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American Airlines Stock Price Jumped

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 The price of shares in American Airlines jumped on Thursday as small investors who had been crashing other stocks in recent days turned their attention to a struggling airline.

The company's stock had risen to 30 percent at one time before giving up most of those profits and ending the day by more than 9 percent. The airline also reported its 2020 financial results on Thursday, saying it had lost about $ 8.9 billion last year.

On social media site Reddit, sellers on the Wall Street Bets page, a community known for disrespectful market negotiations, have pushed for shares in other troubled companies, such as GameStop and AMC, to rise these days as they sought to take on some of Wall Street's top Investors. On Wednesday night, a Reddit user suggested that the American should be next because many professional investors were betting against its stock.

In a phone call with analysts and reporters Thursday, A top U.S. official Doug Parker said the airline would not comment on stock activity.

“Before I begin my prepared remarks, I want to make it clear that we will not respond or answer questions about our recent stock price activity,” Mr. Parker said. "As a rule, we do not expect to move daily with our share price and we will follow that rule today."

Reddit retailers are focusing on short-term trading companies, a way to invest in investors to bet that the company's stock price will go down.

American is the shortest U.S. airline, with short trading accounts worth about 23 percent of its total shares, according to S3 Partners, the data company that follows that trade. (JetBlue is second, with 4.9 percent of the shares reduced.) Expert investors consider the United States to be more concerned about the debt-laden coronavirus epidemic than Delta Air Lines, United Airlines, and Southwest Airlines.

If they are right, short sellers can make a good profit. But if prices go up, they can be very costly. By raising the price of severely reduced stocks, small investors linking Reddit, Discord, and other online platforms have pressured professional investors and forced others to quit their short-term jobs to reduce their losses.

During the day, Robinhood, a trading service best known for amateur investors, said it had banned the stock trading of certain companies, including American, GameStop, AMC, and Best Buy, which annoyed some of its users. On Twitter, a representative of Alexandria Ocasio-Cortez, a New York Democrat, called the move "unacceptable."


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