AMC Entertainment (AMC) - Get AMC Entertainment Holdings Inc. Class A Report shares gained Tuesday alongside other “meme” stocks as day traders renewed their bets on shares of companies they feel they can collectively move higher.
AMC shares rose 4% to $14.51, putting them on track for an eighth straight advance. XpresSpa Group (XSPA) - Get XpresSpa Group Inc. Report, another favorite of Redditors earlier this year, was up 11%, while shares of retailer Express (EXPR) - Get Express Inc. Report were up more than 9%.
Shares of MicroVision (MVIS) - Get MicroVision Inc. Report were up 2.37% after rising more than 8% on Monday. Shares of GameStop (GME) - Get GameStop Corporation Report, the poster child of the meme craze that first kicked off in January, was down 4.4% after surging more than 13% on Monday.
The gains appear to be powered once again by the collective voices of retail traders on social media. The hashtag #SqueezeAMC was trending Monday on Twitter, a collective call to proverbial arms to recreate the momentum that pushed AMC higher in January and forced larger institutional investors out of their short positions.
AMC also was the most-cited stock on online message board Stocktwits over the weekend. On Tuesday morning, $AMC - the way to reference the AMC's stock ticker on Twitter - had been mentioned 1,420 times in the past hour.
TheStreet’s Bret Kenwell analyzed AMC’s prospects, noting that investors aren't worried about the theater chain's debt or dilution.
“They want reassurance that AMC will be in a good position going into what they hope is a strong rebound from COVID-19," he wrote.
Further, “With additional capital raised, that assurance is being granted. Keep in mind, the company raised capital earlier in the year, too,” Kenwell said.
On May 6, AMC provided an upbeat outlook for the rest of the year, even as the company reported another quarter of heavy losses.
Still, with almost 400,000 shares traded early Tuesday, AMC was the most active premarket stock among companies with market values of $500 million or more, according to data compiled by Bloomberg.