AMC Entertainment (AMC) shares remained entrenched in the spotlight Friday, climbing for a fifth straight day amid a fresh frenzy for meme stocks, though giving up those gains and wobbling too and fro by midday.
AMC shares jumped nearly 25% Friday, though reversed course by midday and at last check was down 4.49% at $29.50, though still up well over 100% for the week. The stock on Thursday posted its biggest one-day gain since January’s meme-stock retail-trading frenzy, pushing its market value past $10 billion for the first time.
AMC, along with GameStop (GME) and other seemingly underpriced publicly traded stocks, has benefited from renewed interest among retail investors collectively encouraging one another to bid up the shares in an effort to unseat short-sellers, though in AMC’s case the stock has gotten a boost from a generally positive view that the world’s biggest movie-theater company’s worst days are over.
AMC was first caught up earlier this year in a wave of volatility amid a David-and-Goliath battle between retail investors using the online Reddit message board WallStreetBets to collectively push higher shares of GameStop as well as Bed Bath & Beyond (BBBY) and BlackBerry (BB) .
Anyone shorting the stocks of AMC or GameStop is out of their mind, TheStreet founder Jim Cramer told his Mad Money viewers this week. The WallStreetBets crew is too powerful, Cramer explained, and anyone who dares to bet against these stocks could get slaughtered.
“Stop it already, you silly sellers,” Cramer said in his Real Money column. “Can't you tell what is happening? Can't you see how short-sighted you are, how blind to the situation?”
Cramer specifically called out the “fools” - meaning larger institutional investors who continue to short the likes of AMC and GameStop, “… to the mobs that are determined to take them higher.”
Asked Cramer: “Given this group has no desire to quit and is running over sellers the way tanks disembodied hapless soldiers in World War II, why not get out of the way?
“Walk away. Don't be their fodder. Let them take it up so you can make more money.”
“I don't know why the Reddit crowd is so stuck on GameStop and AMC,” Cramer said. “You can't be a two-trick pony.”
At last check, shares of AMC were down 6.52% at $24.79. GameStop shares were down 8.71% at $232.