American Airlines soared as much as 31% on Thursday as traders that frequent Reddit’s WallStreetBets forum sparked short squeezes in a growing list of stocks this week.
“AAL the next GME?” one Reddit user asked in a post on Wednesday.
American Airlines seems to have fit the bill, with about 30% of the float sold short. On top of that, the company had a catalyst the set the move on fire: earnings.
On Thursday, the airline operator reported better than expected fourth-quarter earnings results, beating both revenue and income estimates.
Shares hit a high of $30 in Thursday’s pre-market trading session, representing a gain of as much as 81%. And the gains in short-squeezed stocks don’t appear to be letting up yet, as evidenced by GameStop, which soared more than 40% in Thursday morning trading to a high of nearly $500.