Bed Bath and Beyond shares (BBBY) weren’t the only ones burning short sellers today. AMC (AMC), GameStop (GME), and other highly shorted stocks rallied today. The list includes:
- Carvana (CVNA)
- Arrival (ARVL)
- Electrameccanica Vehicles (SOLO)
- Beyond Meat (BYND)
- EVgo (EVGO)
- Wayfair (W)
There could be a couple of reasons for today’s rally in these stocks. The first is that investors are optimistic about inflation cooling down and have switched to a risk-on environment. Alternatively, short-sellers could simply be taking profits ahead of tomorrow’s CPI report to reduce risk in the event that inflation comes in lower than expected.
Nevertheless, each stock mentioned has seen painful declines over the past 12 months, as indicated by the image below.
Indeed, the best-performing stock was GME, which lost almost half its value. CVNA and ARVL were the worst performers, as both destroyed over 97% of their equity values. Therefore, only recent investors are truly enjoying today’s price movements.