Hardcharger

It appears that after being successful with GameStop, AMC, and Bed, Bath, and Beyond, Reddit/Wall Street Bets have American possibly in their crosshairs. GameStop has seen a 300% increase in stock value as of recent. How does this bode for American? Good, bad, indifferent?

https://www.foxbusiness.com/markets/could-american-airlines-become-the-next-gamestop-reddits-wallstreetbets-says-its-possible

JTwift

Nobody on WSB is talking about American. This is 100% someone at FoxBusiness making up a story to either distract from GME or, worse, prop up their own investment in American. Which is more market manipulation. Notice the article said “one thread.” Yeah, there have been posts of what seem to be distraction attempts by bots and maybe the short GME holders, trying to divert attention.

See, Fox can write an article claiming X stock is the next GME! And that’s ok. But a bunch of random WSB people call out a hedge fund for shorting 140% of shares, and all of a sudden there needs to be regulation.

I expect more of these stories with [insert whatever stock].

wrxpilot

I agree completely. I’ve been on WSB for years, and have been watching (and participating to some extent) in the meme parade lately of TSLA, PLTR, GME, etc.

Every so often there are some posts asking about some of the travel stocks, but the only recent discussions are about AMC, BB, etc.

GME had several unique features that lead to the current situation. Very heavily shorted, a new CEO that is highly regarded, bullish positions from people like Michael Bury, and bearish positions from firms like Citron and Melvin (places that the WSB guys hate with a passion). These are all things that have nothing whatsoever in common with AAL.

Finally, the article in question seems to suggest that simply because AAL has a higher percentage of short float than rivals (UAL, DAL, LUV, etc.) that this means it could blow up. That’s really silly, as the short position on AAL is still WAY too low to create a short squeeze. The reason AAL is more heavily shorted than rivals is because it’s a riskier investment than rivals.

Flt1ok

Meanwhile AAL is up over 30% pre market.....

Tranquility

It was 45%, now ~25%.... Still not bad!

wrxpilot

Heck, it was up 80% at one point! Yes, over $30. More than it was pre-COVID. So I take back my earlier comment, it definitely got lumped into “meme” stock category.

I still stand by my earlier comment about a short squeeze though... It isn’t going to experience that with the current short float.

Flt1ok

Yeah, but there is nothing in the fundamentals to support a 25% gain. The 4Q was better than expect so you would expect some gain - but 25-45%? Something else at work there.

Tranquility

It’s a Reddit short squeeze.

Thedude

You sure about that?!
As I type this the high for the day is $21,77.

Dont go by that posting on Facebook

wrxpilot

No, it’s a Reddit pump. Big difference.