AMC Continues to Ride Social Media Hype as Share Prices Skyrocket to 50% Increase
Grow Your Business, Not Your Inbox
The power that social media has over the stock market can be astonishing at times, with viral jokes to boost cheap shares seeing tangible results in the market.
One company seeing an astonishing boost from Reddit and Twitter is AMC, whose stock has increased 563% since the beginning of 2021.
The hashtags #AMCSqueeze and #AMCtothemoon have been trending heavily the past week on Twitter, their purpose being to generate as many small stock buyers as possible to force out big-time investors.
A popular Reddit group of investors who call themselves the “apes” have also been generating buzz on the r/wallstreetbets subreddit by buying up as many short shares as they can and urging shareholders not to panic-sell as the stock prices head towards record highs — the highest of which was earlier this year when AMC hit $20 a share.
The social media craze has become so powerful for the brand that AMC Entertainment CEO Adam Aron even returned to Twitter himself, tweeting out memes that his supporters have made of him or praise to his shareholders:
The creativity in this community continues to amaze me. pic.twitter.com/x4jowrRqqe— Adam Aron (@CEOAdam) May 12, 2021
“We work for them. I work for them,” Aron said of AMC’s shareholders on an earnings call.
The entertainment company’s share price has skyrocketed over 50 percent in the past two weeks, with the valuation most recently hitting $14 per share.
Of course, this rise can be partially attributed to the loosening pandemic restrictions, which will allow more movie theaters to reopen and more people buying tickets to attend shows.
But Wall Street experts aren’t predicting long-term success for shareholders.
In an earnings call in early May, AMC cited around $575 million in losses for Q1, which is expected to continue as the year goes on.
Top analysts believe that the company “won’t return to profitability until 2024 at the earliest,” CBS News reported.
Either way, it looks like the apes aren't going down without a fight.