AMC surpasses 12,000 million in market capitalization in a new move of the WallStreetBets
Meanwhile, from Reddit he wonders if AMC stocks can go “all the way to the moon,” according to Erin Fuchs at Yahoo Finance.
The chain of cinemas avoided bankruptcy at the beginning of years thanks to the coordinated investment of retail investors gathered on the Reddit blog alongside other stocks such as GameStop and Bed Bath & Beyond. This joint operation sought to help disadvantaged companies in an effort to force short sellers to buy them to hedge their positions. This pushed the stock price higher as you will all remember.
GameStop also had its bullish momentum last Wednesday with 15%, adding 5% more yesterday.
WallStreetBets retailers spoke about AMC on Thursday, one of whom defined the cinema company as a ‘rocket’, and another urged fellow Redditors not to sell, and another wondered if it can make it to the moon. Fuchs pointed out.
The shares closed at $ 26.52 on Thursday, down from $ 14 on May 17, when they were also rising. The chain fell below $ 2 earlier in the year, a few weeks before receiving a $ 917 million cash boost from investors to help it avoid bankruptcy.
AMC indicated earlier this month that it had sold 43 million shares at $ 9.94 each, raising a total of $ 428 million. This happened after the hashtag “AMCsqueeze” that began to be a trend on Twitter. This move was taken advantage of by the Chinese real estate conglomerate Wanda Group to sell the majority of the shares he owned in the company.
“The gains come after the theater chain was hit by a global pandemic that resulted in a loss of $ 4.59 billion in 2020 compared to $ 149 million the previous year. However, recently, CEO Adam Aron suggested that AMC fared better than other theater chains, ”says Fuchs.
Aron commented that his participation had soared 25% compared to pre-pandemic levels.
“We have taken part of those that remained closed or those that went bankrupt,” Aron said according to a Wall Street Journal report. Smaller chains like the Alamo Drafthouse filed for bankruptcy and closed several locations.
The cinema firm can also benefit from advances in vaccination in the US with 40% of the population vaccinated. In this regard, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, predicted last month that Americans could go to the movies without wearing masks by fall or early winter.
Still, short sellers have not waned on the company and a veteran analyst told Yahoo Finance that it is in “secular decline” as more streaming signals go live.
“There will be a lot of movies where you just say, I’ll wait and watch at home, and the movie theater business financially means they’re going to make less money,” said Rich Greenfield, a partner at LightShed Partners.
“This is one of the reasons we have a ‘sell’ rating on AMC.”added.