AMC, a Kansas-based movie theater chain, witnessed an unforeseen rise in its shares on Wednesday, June 2 after they soared to more than 90%. We could remember that earlier this year, GameStop has zoomed to a surprising climb of its shares--and traders use this as a resemblance to the most recent surge.
The weird part about this blockbuster growth is the addition of AMC's newest program and action involving a hedge fund. The former has been initiated through the company's free popcorn give-away, together with other perks to the meme stock investors. These activities are believed to contribute to the influx of traders in the entertainment firm.
AMC Stocks Shoot Up to 95% Soar
According to CNET's report on Wednesday, June 2, the company's initial shares price began at $37.52 during the day. Moreover, the largest movie theater chain in the world saw that it has gradually increased from $9.71, its previous price that was recorded on May 3.
The GameStop stock rally which has trended a few months ago has transitioned to a new meme stock wave--and this time with a new company. Particularly, those who have been involved in the WallStreetBets subreddit madness are now doing the same thing with AMC.
While the fresh news erupted among the investors, the short sellers continued to lose more shares than they should gain.
For instance, Mudrick Capital, an example of a hedge fund, has purchased MAC Shares amounting to $230 million on Friday. May 28, Market Watch reported on Tuesday, June 1. This week, it sold the stocks for a bigger price which translates to its meaty profit that is gained,
To end the day. AMC has come up to a favorable conclusion after it called a 95% surge in its shares. The value of the stocks reached $65.22 after a few hours of trading, and still, many investors continuously place their money to the theater company while enjoying free popcorn.
Besides the sudden amp of AMC's shares, the company also unveiled the AMC Investor Connect which targets the retail investors, who at the same time, are "non-institutional stock traders. They are comparable to those who flocked the WallStreetBets subreddit for an unexpected stock frenzy.
For those meme stock traders who have completed signing up on the website, they are guaranteed to receive popcorn which is free of charge. They can also reap a lot of benefits while being granted the perk of having direct investor communications from AMC.
GameStop is Chasing AMC's Limelight in Stock Trading
According to Benzinga's report on Tuesday, June 1, GameStop has also moved in front after ending with a 13% stock price increase during the day. The video game and electronics company proved that AMC was not the only one who was in the middle of the spotlight for the meme stock popularity.
Related Article: AMC Rescued from $600M Debt After 'Meme Stock' Rally
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Written by Joseph Henry
