Meme Traders Again Try to Push AMC Entertainment to the Moon
(Bloomberg) -- AMC Entertainment Holdings Inc. rallied for a fifth straight day as retail investors flood chatrooms and social-media platforms trying again to pump up the movie theater’s shares.
#AMCSqueeze trended on Twitter, and Reddit users cheered each other’s diamond hands for continuing to pile into the company, which, alongside GameStop Corp., became the face of meme stocks in January.
The Leawood, Kansas-based company spiked 24% to $12.77 on Thursday, after more than doubling gains even after AMC announced it had raised about $428 million by selling shares.
The movie theater chain wasn’t alone in staging a rally on Thursday as a handful of retail-trader favorites soared after a Robinhood blog post said users can now exercise options contracts in the app. GameStop spiked 14%, while headphone maker Koss Corp. rallied 12% and Express Inc. jumped 13%.
AMC’s five-day rally has stood out as stocks broadly fall amid inflation fears. It has risen 42%, compared with a 5.9% decline for an equally weighted Bloomberg basket of companies that Robinhood Markets restricted trading of during the meme-stock craze early this year.
Its winning streak comes after an eight-day slump that ended just as it reported first-quarter results which revealed a wider-than-expected loss. Still Chief Executive Officer Adam Aron struck an upbeat note on the earnings conference call, saying the internet traders who pushed the company’s stock price this year had given him more confidence for the year ahead. AMC is up more than 500% in 2021.
There were approximately 133,000 Reddit interactions for the term AMC over the past week, according to Facebook’s CrowdTangle data tool.
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