AMC Entertainment (AMC) , BlackBerry (BB) and other so-called meme stocks were once again surging on Wednesday amid a renewed push from retail investors who continue to collectively bet that the value of the stocks will rise.
AMC Entertainment shares were up some 60%, extending gains that saw its stock rise more than 120% last week, while BlackBerry shares were up more than 18%. Other so-called meme stocks including GameStop (GME) , Koss (KOSS) and Bed Bath & Beyond (BBBY) also traded double-digit-percentage-points higher, with Bed Bath up 45%.
AMC and other now-household-name companies that have nothing in common other than capturing the imaginations and pocketbooks of online retail traders have been benefitting from another collective push by retail investors who feel there’s quick money to be made.
AMC's stock has soared more than 1,400% this year, leading gains among the group of meme stocks that have continued to be rooted on by traders retail investors in what has been dubbed a "Reddit rally" - a nod to the Reddit platform where investors encourage one another to bid up what they see as undervalued companies.
For AMC and CEO Adam Aron, the ongoing trading frenzy that has seen the movie theater giant’s shares zip as high as $32 and as low as $2 over the past six months has been an ongoing opportunity to issue shares and raise more capital as the company looks to return to a post-pandemic normal.
"In our view, this is not mindless dilution, but rather this is very smart raising of cash so that we can grow this company... to many of you on Twitter, to grow YOUR company," Aron said in a tweet on Tuesday. “Watch out naysayers, $AMC is going to play on offense again. Here we come!"
Meantime, institutional investors including distressed credit-focused investment firm Mudrick Capital also have been busy taking advantage of the meme-stock upswing.
Mudrick Capital on Tuesday reportedly sold its stock in AMC, the same day that the theater chain disclosed that it had sold $230.5 million of its shares to the distressed-credit-focused investment firm. Mudrick disposed of its stake after concluding that AMC’s stock was overvalued.
TheStreet founder Jim Cramer told his "Mad Money" viewers last week that short-sellers who are still betting they can profit from a drop in meme-stock prices should stand down.
At last check, shares of AMC were up 60.57% at $51.35. Shares of BlackBerry were up 18.23% at $13.65, while shares of GameStop were up 10.61% at $275.43. Koss shares were up 24.87% at $30.16. Bed Bath shares were up 41.64% at $38.61.