Move over GameStop: Discovery, AMC Networks are latest heavily shorted stocks to see huge 2021 gains
Summary
Its not GameStop, but Discovery can thank the Reddit effect for an enormous surge in its stock price this year. Discoverys short interest — the amount of outstanding shares that have been sold short — is more than 27%, just ahead of fellow media company AMC Networks (not to be confused with AMC Entertainment Holdings, which owns movie theaters and whose stock skyrocketed along with GameStop last month). AMC Networks -- which owns cable networks AMC, WeTV, Sundance and BBC America -- has also more than doubled since the start of January, even though it doesnt have a streaming service with the same potential growth story as Discovery+, which has already surpassed more than 11 million subscribers. AMC Networks long-term growth prospects in a streaming world are suspect at best, with minimal owned content compared to media behemoths like Netflix and Disney. Thats a sign both companies are primarily benefitting from shorts frantically covering bets to avoid being squeezed — like GameStop.