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Stock Market Today With Jim Cramer: What AMC Should Do

Jim Cramer discusses the latest stock market news, including AMC, how to trade Advanced Micro Devices, and markets on the last trading of May.

Stocks rose Friday and the S&P 500 looked to close out May with its fourth straight month of gains as inflation data failed to dent investors' sentiment on the recovering U.S. economy.

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about meme stock AMC, how to trade Advanced Micro Devices, and markets on the last trading of May.

Meme Stocks

Shares of AMC Entertainment  (AMC) - Get Report rose for a fifth day amid a fresh frenzy for meme stocks and as the movie theater giant prepares for a back-to-normal summer of movie premieres and in-person attendance.

Cramer said AMC should do a $2 billion convertible bond. "You do that and people who short common stock and own convertible bonds are going to be met with a tremendous amount of buy pressure from AMC-WallStreetBets people. And that's fine," he said.

"[CEO Adam Aron] can use the $2 billion and buy back some of the more egregious high-coupon debt. It's really important that he cuts that debt down." 

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Advanced Micro Devices: Buy or Sell?

Advanced Micro Devices  (AMD) - Get Report shares were higher Friday after Benchmark initiated coverage of the chipmaker with a buy rating and $100 price target. Analyst Cody Acree said he expected "the firm’s leadership to continue to drive share gains for at least the next few years."

Cramer said that when AMD closes the Xilinx  (XLNX) - Get Report deal, people will buy it. "Xilinx is a whole new universe; it's not competing with Intel  (INTC) - Get Report," he added.

Friday's Market

Cramer said he's watching AMC like everybody else in the markets Friday. "Two hundred fifty million shares traded. It was up substantially more than it is now. It's trading rapidly. I keep thinking the CEO, Adam Aron, is somehow going to take advantage of this because he does have $10 billion in debt."

AMD is a key holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.