AMC Entertainment shares wave of social media frenzy – Deadline
AMC Entertainment shares more than doubled this week with a 45% rise – and still higher – on Thursday that catapulted the exhibitor beyond a market cap of $ 12 billion. Retailers on social media have sworn they will keep buying, not selling.
AMC CEO Adam Aron said that more than three million individual investors, many traders Redditors and Robin Hood, now own the majority of the shares since the Wanda Group sold the last of its holdings this month- this. He actively adopted them: “They own AMC. We work for them. I work for them, ”he said on a May 7 conference call.
Wall Street analysts who attempt to correlate stock prices with a company’s business and fundamental outlook have been left in the dust. Most have neutral ratings (like a hold) or sell stocks. Eric Wold, who follows the B Riley Securities sector, downgraded AMC yesterday to neutral from buy to valuation as the stock broke its price target of $ 16. He had recently raised the target to $ 13 thanks to an optimistic combination of a global box office reopening and recovery, additional studio windowing deals and debt reduction.
Wanda Group Sells Most of AMC Entertainment Stock; End the pandemic era with a tiny 0.002% stake
In addition, the holiday weekend is upon us with A quiet place 2 and Cruella hit theaters. So part of the action’s movement is based on promising fundamentals. They pushed Cinemark and Imax up 3.5% and 4.4% respectively today.
AMC, however, is bona fide meme stock, a category that didn’t really exist until January when retail traders on social media and chat rooms encouraged each other to cram into Gamestop, AMC and a handful of others. Stocks have since rebounded, but AMC has seen a big rally this week, with #AMCStrong trending, as well as #AMCSqueeze and #AMCtothemoon. AMC, Ford and Boeing are the top three market winners today.
“I can’t rationalize it,” Wold said. The first round of retail buyers wanted to criticize short sellers – investors, often hedge funds, who bet a stock will fall. Then there was #SaveAMC, carried by retailers who know and love the brand. In fact, the stock price surge allowed the financially troubled chain to rise to decent cash by selling stocks – which was much more difficult when AMC was trading, for example, at its lowest in 52. weeks $ 1.91. “They raised all the capital they could,” Wold said.
“DO NOT SELL !!! They CAN’T stop this unless you sell. HOLD IT ON !!!” read an article on StockTwits, a messaging platform for traders. “$ AMC remember WE own the float !! WE name the price !!! Hodl !!! Read another.
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