Thursday, May 23, 2024

AMC Theatres Shares Soar 80 Percent After Meme Stock Investor “Roaring Kitty” Resurfaces

Must read

Shares in AMC Theatres surged 80 percent on Monday after meme stock investor Roaring Kitty resurfaced online.

Stock in parent company AMC Entertainment Holdings, led by CEO Adam Aron, ended the day up $2.28, to close at $5.19. That’s a big jump after shares in AMC tumbled in value since the cinema giant during the pandemic used its meme stock mania to raise fresh cash to stay afloat.

The latest speculative buying of AMC shares followed Roaring Kitty, also known as Keith Gill, returning online after a 3-year absence and rekindling interest in the the cinema chain’s shares. His post on X, formerly Twitter, received over 18 million views and sent shares in GameStop up $12.99, or 74 percent on Monday to close at $30.45.

The return of meme stock mania for the video game retailer effectively helped AMC ride the latest wave of retail investor interest on Wall Street. Representatives for AMC Theatres offered no comment when asked about the dramatic rise of AMC shares amid the return of GameStop meme stock mania.

The cinema chain has seen its stock dramatically rise and fall since 2021 due to retail traders encouraged by Reddit, where Roaring Kitty held sway, embracing company shares as a meme stock. Online traders buying AMC shares and sending its value skywards — at one point to $35 in 2021 — allowed the company to begin selling stock for a financial lifeline.

That happened in the face of opposition from retail traders known as “apes,” and AMC shares getting crushed in value in 2023. The saga of GameStop was detailed in last year’s Sony feature Dumb Money, with Paul Dano portraying Keith Gill.

Latest article