AMC value is swinging wildly from one extreme to the other.
In the modern occurrences of meme stocks (which is a sentence I did not think I’d be writing a year ago), the majority of targets of meme investments are content to just sit back and let the investors play the game. GameStop, for instance, didn’t have much to say during their major stock surge earlier this year, either about the hedge funds short-squeezing them, or all of the Reddit investors holding onto their shares for dear life. AMC, on the other hand, has begun to lean into its meme investors, and the results have been quite the wild ride.
Yesterday, values of AMC stock shot up over 120%, reaching an unprecedented $70 per share in valuation. Once again, this is primarily the result of traders from the WallStreetBets subreddit attempting to leave hedge funds aiming to short AMC stock holding the bag. Interestingly, though, AMC’s CEO, Adam Aron, Tweeted his support for the investors, promising them special perks at AMC this summer.
“Many of our investors have demonstrated support and confidence in AMC. We intend to communicate often with these investors, and from time to time provide them with special benefits at our theatres,” Aron said. “We start with a free large popcorn on us when they attend their first movie at an AMC theatre this summer.”
Following these surges, AMC announced this morning that they would be selling an additional 11,550,000 shares of Class A stock. This announcement caused severe volatility in the market, forcing trading of AMC shares to be temporarily halted. The stock’s value also dropped sharply by 26.14% as of writing.
Even so, traders are holding fast. As the stock trends on Twitter, users have expressed their intent to hold onto their shares even through the period of volatility, dismissing it as nothing more than an attempt by Wall Street at scaring them off.
— Mike Wazowski (@TheRealMike803) June 3, 2021
$AMC apes, we knew this was coming. We knew this push to incite panic selling was going to happen. I don't know about you but I'm not selling. This exactly as expected. The gains will be greater from the bounce. #amcstock #AMCSTRONG
— Mike Kappel (@CCMbuilds) June 3, 2021
— The Stock Pessimist (@PessimistStock) June 3, 2021