{"id":28844,"date":"2021-05-28T05:15:08","date_gmt":"2021-05-28T05:15:08","guid":{"rendered":"http:\/\/flamestorm.com\/main\/?p=28844"},"modified":"2021-05-28T05:15:18","modified_gmt":"2021-05-28T05:15:18","slug":"amc-up-over-40-in-one-day","status":"publish","type":"post","link":"http:\/\/flamestorm.com\/main\/2021\/05\/28\/amc-up-over-40-in-one-day\/","title":{"rendered":"AMC up over 40% in one day"},"content":{"rendered":"
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AMC Entertainment\u00a0shares have more than doubled this week with a 45% surge \u2014 and still rising \u2014 on Thursday that catapulted the exhibitor past a $12 billion market capitalization. Retail traders on social media swore they\u2019d keep buying, and not sell.<\/p>\n

AMC CEO Adam Aron has said that more than 3 million individual investors, many Redditors and Robin Hood traders, now own the majority of the stock since\u00a0Wanda Group sold the last of its holdings\u00a0this month. He\u2019s actively embraced them: \u201cThey own AMC. We work for them. I work for them,\u201d he said during a May 7 conference call.<\/p>\n

Wall Street analysts who try to correlate stock price with a company\u2019s fundamental business and prospects have been left in the dust. Most have either neutral \u2014 like a hold \u2014 or sell ratings on the stock. Eric Wold, who follows the sector for B Riley Securities, on Wednesday downgraded AMC to neutral from buy on valuation as the stock blew past his $16 price target. He\u2019d recently boosted the target to $13 on an upbeat combo of continued global box office reopening and recovery momentum, additional studio windowing agreements and debt reduction.<\/p>\n

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Plus, the holiday weekend is upon us with\u00a0A Quiet Place Part II<\/em>\u00a0and\u00a0Cruella<\/em>\u00a0hitting theaters. So some of the stock\u2019s movement is on promising fundamentals. They pushed Cinemark and Imax up today by 3.5% and 4.4%, respectively.<\/p>\n

AMC, however, is a bona fide meme stock \u2014 a category that didn\u2019t really exist before January, when retail traders on social media and investing chatrooms egged each other on to pile into GameStop, AMC and a handful of others. The shares have bounced around since, but AMC saw a sharp uptick this week, with #AMCStrong trending, along with #AMCSqueeze and #AMCtothemoon. AMC, Ford and Boeing are the top three gainers on the market today.<\/p>\n

\u201cI can\u2019t rationalize it,\u201d said Wold.<\/p>\n

The first round of retail buyers wanted to slam short sellers \u2013 investors, often hedge funds \u2014 who bet a stock will fall. Then it was #SaveAMC, driven by retail traders who know and like the brand. In fact, the soaring stock price enabled the financially struggling chain raise to decent cash by selling shares \u2013 which was much harder when AMC was trading at, say, its 52-week low of $1.91.<\/p>\n

\u201cThey\u2019ve raised all the equity they can,\u201d said Wold.<\/p>\n

\u201cDO NOT SELL!!! They CANNOT stop this unless you sell. JUST HOLD!!!\u201d read one post on StockTwits, a messaging platform for traders.\u201d$AMC<\/a>\u00a0remember WE own the float!! WE name the price !!! Hodl!!!\u201d read another.<\/p>\n