AMC shares jump again as meme stock rally continues
Shares in cinema chain AMC Entertainment jumped again today as armchair investors continued to pump money into so-called meme stocks.
AMC is one of a number of meme stocks that rallied sharply earlier this year after gaining support from retail traders on Reddit forums such as Wall Street Bets, who forced a squeeze on short-sellers.
This trend appears to have re-emerged, with AMC’s market value almost doubling in a bullish run last week. Its stock rose again as much as 18.5 per cent today.
Traders told Reuters that some Wall Street institutional investors were ramping up complex options trades that let them bet shares will fall but allow them to keep a lid on losses if the stock instead goes up in value.
Data shows AMC has been the top traded stock among clients of brokerages Fidelity and Freetrade, used heavily by amateur and individual investors playing with their own money.
Fellow meme stocks GameStop and Blackberry rose nine per cent and 12 per cent respectively today.
AMC’s share price hit a record high last week after chief executive Adam Aron offered a free large popcorn to even the smallest investor if they signed up to a regular newsletter — an apparent nod to armchair investors.
The meme stocks’ rally was briefly halted after the company filed to sell 11.5m in shares. However, its stock remains up around 2,850 per cent since the start of the year.