"Though I wouldn't look to punch a ticket at these levels, I certainly wouldn't dare initiate a short position. Indeed, if the meme frenzy of 2021 taught us anything, it's that betting against even a seemingly sure thing is a dangerous proposition that might just lead to uncapped losses. Between going long and going short, I'd much rather go for the former any day of the week."
"Of course, betting on shares of GME or AMC at these levels probably won't get you the kind of jolt you're looking for unless, of course, you think Roaring Kitty will have more to roar about these beloved but challenged businesses. Indeed, owning a stock just because you think someone else will scoop it up is a risky move. But if you're a frequent poster on the WallStreetBets subreddit and you're looking for karma, nibbling on a few shares might offer some thrill."
Gamestop (GME) and AMC Entertainment (AMC) are still held by traders inclined to HODL despite past meme-stock volatility. Shorting either name remains dangerous because of potential for sudden rallies and uncapped losses. A renewed meme frenzy could push shares higher, but such bets rely on speculative momentum rather than fundamentals. GME experienced a dramatic spring 2024 spike of nearly 400% from trough to peak, followed by a severe drawdown; shares currently sit roughly 50% below the May 2026 peak. Owning shares primarily for social-media-driven demand is risky and unlikely to guarantee substantial profits.
Read at 24/7 Wall St.
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