Meme stocks such as GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) showed massive strength this week as retail investors rotated their way into the same stocks that saw the historical short squeeze in 2021.
The threshold for a potential short squeeze is when the high short interest of a stock is 20% or above. Meaning if 20% or more of the outstanding shares of a stock are owned by short-sellers, the underlying stock can be on-ramped to a short squeeze.
