AMC, this summer s blockbuster stock, warns of plot twists
Industry analysts have yet to fully explain, or even comprehend, the extreme enthusiasm for its stock that s being driven by large numbers of online traders. Author: MICHELLE CHAPMAN AP Business Writer Published: 11:20 AM EDT June 3, 2021 Updated: 11:20 AM EDT June 3, 2021
WASHINGTON AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up almost 3,000% this year, and 140% just this week.
AMC is emerging from pandemic lockdowns that threatened the very existence of the company. Industry analysts have yet to fully explain, or even comprehend, the extreme enthusiasm for its stock that being driven by large numbers of online traders who seem to disregard the rough path the company faces in its recovery.
Updated: 11:08 AM CDT Jun 3, 2021 The Associated Press AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up almost 2,000% this year, and 140% just this week. AMC is emerging from pandemic lockdowns that threatened the very existence of the company. Industry analysts have yet to fully explain, or even comprehend, the extreme enthusiasm for its stock that being driven by large numbers of online traders who seem to disregard the rough path the company faces in its recovery. AMC acknowledged that phenomenon Thursday in a filing with the U.S. Securities and Exchange Commission when it announced the potential sale of shares “from time to time.”“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last, AMC said in the filing.
The meme-stock frenzy is back and bigger than ever.
On Wednesday, shares of AMC Entertainment Holdings Inc skyrocketed to an all-time high in a wild trading session as the Reddit retail-trading army came back in force, leaving many Wall Street pros wondering, yet again, what on Earth had become of the US stock market.
The money-losing movie theater chain rose 95 percent and closed at a record high at US$62.55. At one point the stock rose as much as 127 percent, pushing its total gains for the year to 3,000 percent, as its market value briefly soared past the US$33 billion