AMC Shares Jump as Investors Push Up Meme Stocks

AMC stock has surged 149% in the last three months amid optimism about the growing vaccinations and the booming economic recovery.
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AMC Entertainment  (AMC) - Get Report shares rose sharply Monday, hitting their highest level since the January surge, as retail investors continue to show enthusiasm for meme stocks.

AMC recently traded at $13.86, up 6.77%. It peaked at $19.90 Jan. 27, but has surged 149% in the last three months, with optimism about vaccines and economic recovery boosting the stock.

Last Thursday, AMC soared after the world’s largest movie theater chain announced it had completed the offering of 43 million shares it launched on April 29.

The offering brought AMC $428 million of new equity capital, before commissions and fees, at an average price of $9.94 a share.

AMC also has drawn support from enthusiastic Reddit readers. There were about 133,000 Reddit interactions with the word “AMC" in them the week prior to Thursday, according to Facebook’s CrowdTangle data tool, Bloomberg reported. 

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Fellow meme stock GameStop  (GME ) - Get Reportwas up almost 6% on Monday, while Koss  (KOSS) - Get Report shares were up almost 3%.

On Friday, TheStreet.com’s Bret Kenwell analyzed AMC’s prospects. “Investors aren't worried about debt or dilution at this point,” he wrote. “They want reassurance that AMC will be in a good position going into what they hope is a strong rebound from COVID-19."

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 big losses.

AMC lost $567.2 million in the quarter, or $1.42 per share, on revenue that fell 84% to $148.3 million. Analysts were expecting a loss of $1.31 per share on revenue of $156.3 million.