Shares of AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and Cinemark (CNK) - Get Cinemark Holdings, Inc. Report rose Monday after the big movie-theater chains said their October ticket sales were the highest for any month since February 2020.
The companies didn’t provide exact numbers. Movie theaters shut down in March 2020 thanks to the Covid pandemic.
AMC stock on Monday closed 4.8% higher at $37.07. It has slid 4% in the past month as meme traders ran out of gas. But it’s more than tripled in the past six months.
Cinemark closed at $20.90, up 11%. That leaves it up 7% for the past month and down 3% for the past six months.
Last month, the Securities and Exchange Commission issued a report on trading in the so-called meme stocks.
The report examined the roller-coaster trading of meme stocks in January. It put the kibosh on conspiracy theories circulating on the internet, but it also said market dynamics should be investigated.
Those dynamics include gamification of stock-trading apps, payment for order flow and short-selling.
“The extreme volatility in meme stocks in January 2021 tested the capacity and resiliency of our securities markets in a way that few could have anticipated,” the SEC said in its report.
“At the same time, the trading in meme stocks during this time highlighted an important feature of U.S. securities markets in the 21st century: broad participation.”
Further, “People may disagree about the prospects of GameStop GME and the other meme stocks, but those disagreements are what should lead to price discovery rather than disruptions,” the SEC said.