Shares of some of the heavily shorted stocks that had been rocketing higher over the last several sessions gave back some gains in late trading, but still held sharply higher on the week. GameStop (GME) more than doubled on Wednesday before dipping slightly in late trading. Shares of AMC (AMC) sank more than 25% after-hours, following an extraordinary run-up of 300% during the regular trading day. BlackBerry (BB), Express (EXPR) and Bed Bath & Beyond (BBBY) – also darlings of Reddit’s r/wallstreetbets forum as of late – dipped in late trading.
“This will work until it doesn’t,” Jeff Sherman, DoubleLine Capital chief investment officer, told Yahoo Finance on Wednesday. “It’s this concentrated fervor that’s going into single names, and so I don’t think it has ramifications for the broad market. But this is exactly what we talk about when we talk about blow-off tops in market, euphoria.”
