Put another one in the win column for the meme-stockers.
Driven in large part by the enthusiasm of small-time traders in the Reddit forum known as “Wall Street Bets,” AMC’s share price skyrocketed by more than a 100% on Wednesday and more than 3000% this year to hit above $70 — an all-time high that marks the best performance of any stock in 2021 (yes, including GameStop). The reddit investors were quick to celebrate, sending the hashtag #AMCArmy trending.
News that AMC sold 8.5 million common shares to hedge fund Mudrick Capital for $231 million, diluting the stock, could have been interpreted as a sign of weakness. Instead, Redditors took AMC’s word that it plans to use the increased liquidity to go “on offense” and aggressively pursue the “most valuable theatre assets, as well as to make other strategic investments.” After Mudrick turned around and sold its shares on Tuesday, CNBC reported the firm may have “missed out on more than