AMC Theatres has got its so-called memestock status back as shares in the mega-exhibitor posted a double-digital surge on Wednesday.
Parent AMC Entertainment Holdings saw its stock price close at $4.91, up 85 cents or nearly 21 percent, with retail investors piling into the company as financial markets kick into gear for 2023. The latest memestock mania for the debt-laden cinema giant was preceded earlier in the day by shares in struggling retailer Bed, Bath and Beyond jumping by around 50 percent.
Representatives for AMC Theatres offered no comment when asked about the latest speculative share price jump for the company. The cinema chain has seen its stock dramatically rise and fall due to casual traders encouraged by Reddit to buy up and meme AMC’s stock.
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Shares in AMC hit a 52-week low of $3.84 on Dec. 28, down sharply from a 52-week high of $21.09 in March 2022. That comes against a market backdrop where global box office is widely expected to improve in 2023, though it is not expected to return to pre-pandemic levels, as the flow of movies to theaters continues to be slower than before.
The memestock surge also follows initiatives — including branded popcorn and credit cards — introduced by AMC in an attempt to mollify frustrated investors, CEO Aron calling for a salary freeze for top executives, and taking to his Twitter account on Jan. 5 to announce he was “AMC’s largest retail shareholder. I will not sell any of these any time soon. I ride with you!”
AMC also announced plans to raise $110 million in new capital to reduce its debt load. AMC also proposed a reverse stock split, which will require shareholder approval.
