AMC rides the Reddit wave

  • AMC shares rose this week after the company announced a much-needed lifeline.
  • The restriction did not last long, as the shares of AMC fell from a high of $17.25 on 1 February to a low of $6 on 2 February.
  • AMC shares did not recover until late February, when New York announced it would allow the partial reopening of theatres. This led to a huge recovery in AMC's share price of 20% as retailers squeezed into the company.
  • In March 2021, AMC Entertainment applied for authorization to issue 500 million additional shares in its proxy statement. Shareholders agreed, and the company decided to issue the additional shares, and the number of shares outstanding increased seven-fold in just six months.
  • In this respect, the sharp rise in AMC shares, underpinned by strong retail interest, will help the company survive and enable it to raise capital.
  • Distressed bond investors such as Mudrick Capital Management have already exchanged AMC debt for stocks, yielding big profits. In addition, AMC is in a strong cash position as it raised money during the crisis to fund future operations.
  • The stock plunged last month after the company filed with the Securities and Exchange Commission to offer up to 50 million shares to stave off bankruptcy.
  • For the full year, AMC reported revenue of $12.4 billion and a loss per share of $1.615. Full-year 2019 reported a loss of $10.8 per share on revenue of $5.55 billion.
  • Wall Street analysts are embarrassed that AMC's share price has soared more than 1,200% since January. Gamestop Corp., AMC Entertainment Holdings Inc. and Express Inc . rose 37% or more this week, reaching their highest closing prices in months.
  • Shares in AMC Entertainment Holdings rose 40% today after a wild ride that wiped out profits from an explosion of support from retailers that began last week and catapulted the cinema operator's stock to levels not seen since 2017.
  • AMC shares soared after the company said it had raised $917 million and taken bankruptcy off the table. AMC Entertainment (AMC) is a cinema operator that has secured $916 million in new funding to address the impact of pandemics on cinema attendance.
  • Poor fundamentals and structural headwinds have not stopped AMC Entertainment's stock from soaring in the meme-share frenzy. But AMC had its moment in meme stocks at the same time as it averted bankruptcy, showing how little a stock rise has to do with corporate fundamentals.
  • This led to a sharp rise in AMC shares as both purchases and shorts covered their positions. Given that the performance required to justify $26 per share is ridiculous, you have to dig deeper into your pocket to see if the stock is worth the purchase price. AMC is not worth owning at this price unless its business model changes drastically.
  • Shares of AMC Entertainment, whose speculative trading activity skyrocketed as the cinema chain's stock traders wowed on Reddit, surged nearly 40% on Thursday.
  • Many retail stock traders rallied on social media platforms and Reddit threads, including r / WallStreetBet, where influential posts advocated AMC Entertainments as the owner of the world's largest theater chain as a long-term business model and encouraged readers to pressure Wall Street firms holding the company's shares.
  • AMC moved away from the "stock buddy" meme on Thursday with the biggest rally since GameStop made a name for itself on Wall Street, posting a 400% short squeeze in the week of January.
  • The company also announced an increase in its quarterly dividend from $1.14 per share to $10.7 per share.
  • Shares in the film theater companies soared after announcing in a filing with the U.S. Securities and Exchange Commission that it would raise $100 million in first lien bonds due in 2026. AMC shares rose a whopping 80% in premarket trading after the news broke.

    • Other stock news
    AMC Entertainment explores raising new capital as its stock surges
    Sector news
    Analysts expect over 2024 rising revenue NetFlix
    Extremely high dividend stock Netease Inc
    Analysts are counting on record year NetFlix
    Analysts expect record sales Kinepolis Group
    Analysts anticipate a super year for Walt Disney
    Analysts anticipate a super year for Kinepolis Group
    Netflix shareholders sue over disclosures of subscriber decline
    National news
    NXP reaps benefits from FRAMOS collaboration
    Tesla net onder de 500.000 cars per year
    Analysts expect over 2024 revenue decrease Caterpillar
    Analysts expect sales decline Biogen
    Analysts anticipate for 2024 on revenue increase Cognizant
    Analysts expect over 2024 growing sales Colgate-Palmolive
    Analysts expect over 2024 revenue expansion Patterson-UTI Energy, relatively high dividend
    Press news
    Test News
    Community-Governed Meme Coin Flockerz Raises $9.5M in Presale Ahead of Exchange Launch
    Wall Street Pepe Presale Reaches $45M Milestone for New Trading Insights Platform
    Lipozem: Introducing Lipozem as the Bizarre Turmeric Hack for Weight Loss Support
    Miracle Play Set to Unveil "AI GRANPRIX," Pioneering the Future of AI-Powered Esports in Web3
    ROSEN, A LEADING INVESTOR RIGHTS LAW FIRM, Encourages Warner Bros. Discovery, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – WBD
    XRX DEADLINE ALERT: ROSEN, NATIONAL TRIAL LAWYERS, Encourages Xerox Holdings Corporation Investors to Secure Counsel Before Important January 21 Deadline in Securities Class Action - XRX
    Logoanalist
    Returns European stocks
    Crypto currencies information
    About us Network Partners
    Fpgroup.nlinfo@analist.nlRSS feedContactIntellectual Property Photos Analist.nlLinksISIN
  • Glossary
    		• MorningstarPrudena.comAAII.comNASDAQvwd GroupEuronextBATS Chi-xBats
    ©2025 ValueSpectrum. All Rights Reserved
    Developed and maintained by  Velainn logo