Shortcut hunters invest in American Airlines – the stock flies 60% – global markets

The aviation giant American Airlines joins the target bank of short hunters. This is according to its stock movement today, which flew almost 60%. After publishing the financial report for the fourth quarter of 2020.

As we wrote earlier, these days there is a kind of struggle between young investors who have been incorporated and old hedge funds. The same investors are looking for companies with many short stocks and want to produce an artificial “short squeeze” that will cause a jump in the stock. These investors are capturing most of the attention around the world in recent trading days.

looks like American Airlines (NYSE: AAL) May be caught in a trading frenzy on the current trading day. Judging by the movements of similar stocks that were found in the same situation and were treated by the short hunters. The names known so far are Blackberry, AMC CORP and GameStop.

Earlier, the airline reported the report and posted a loss of $ 3.86 per share, although it is less than market expectations of $ 4.11, but still terrible reports. Revenue was also above forecasts. American totaled an annual loss of $ 8.9 billion for 2020, after the defeat eliminated demand and capacity for travel.

Airlines are known as companies that are not favored by investors in view of high leverage and low profitability. But apparently this is not the time to take short against these companies. It is estimated that short investors have lost $ 71 billion in the past year due to unrealized shorts. Will there be no short players left in the market?

Tonight, investor platforms such as Robin Hood announcing the liquidation of short investors announced that it would reduce investment activity in stocks suspected of speculative activity against short investors. If we will, this is an irony because if in years past short investors were suspected as enemies of the markets when in crisis they were forbidden to act, now the market seeks to protect them from extinction.