Communications services fell sharply as a wave of volatility hit growth stocks.
Shares of AMC Entertainment, the cinema chain that's reeling from the impact of the pandemic, continued to log erratic gains, more than tripling in value on a single session in what was viewed as another instance of a heavily shorted stock receiving a lift from day traders.
Traders who chat on Reddit and other services are arranging buying raids on stocks like AMC, forcing hedge funds who have bet against the companies to buy back their bets, and sending prices into an upward spiral.
"The company raised $300 million on the back of the move," said one Irish money manager, who didn't wish to be named. "It defies belief to be honest ... stocks are behaving like crypto currencies at the moment."
Shares of AMC Networks, the unaffiliated cable-television company, fell sharply, presumably as a result of mistaken identity.
AT&T shares fell after the telecom giant booked a $15.5 billion charge on its pay-television business, reflecting the damage cord-cutting inflicted on its DirecTV satellite unit even as the company signed up millions to its HBO Max product, thanks to a gambit of releasing major movie premiers on the streaming service.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-27-21 1752ET
