AMC Entertainment Soars After CEO Details Plan to Cash In on Meme Stock Mania
A year after the Wall Street Bets subreddit introduced the idea of meme stocks, the trend is still going strong, and AMC Entertainment just announced a new strategy to capitalize on it.
Companies with diminishing fundamentals like GameStop (NYSE: GME) have managed to stay afloat thanks to massive support from retail investors.
Perhaps no company is leaning harder into meme stock mania than AMC Entertainment (NYSE: AMC). The movie theatre chain, along with the rest of its industry, was struggling to compete with streaming services even before COVID-19 reared its ugly head. When the pandemic hit, the company was on life support. Perhaps the only thing that kept the company from folding was the willingness of retail investors to prop up the company by buying shares.
AMC does not shy away from relying on retail investors’ support to keep the business running. Indeed, the company now considers garnering the support of retail investors a core competency of its business. The company proved this when it purchased 22% of Hycroft Mining (NASDAQ: HYMC), a gold mining company that has nothing to do with movie theatres but has been popular among meme stock investors; both AMC’s and Hycroft’s share prices rose dramatically after the deal was announced.
AMC CEO Adam Aron commented on the company’s announcement, stating:
“While the Hycroft investment is pretty far from home, it does rely on a core competency of our company to understand balance sheets, and raising cash, and solving liquidity problems.”
Also Read: October’s Top 5 Reddit Meme Stocks
While the company has done an admirable job of managing the balance sheet and staying liquid, there is no doubt about what butters its bread.
In a recent interview with CNBC’s David Faber, Aron was asked:
“Is that the new core competence of AMC, to sort of use these memesters that you have to help turnaround the fortunes of a company because they’re willing to put money behind it?”
“I think I have to say the answer is yes, and we proved it,” the AMC boss responded.
Shares of AMC are currently changing hands at $25.68 per share, down 12.8% on the day. YTD AMC stock is down 3.17%.
Small Cap News Movers & Winner Deep Dive – By WealthyVC.com
We scan over 10,000 publicly listed stocks across all seven North American exchanges to uncover the market-moving news that actually matters—focusing on high-quality, liquid, growth-oriented companies in sectors attracting serious capital, like AI, blockchain, biotech, and consumer tech.
Each week, we publish Small Cap News Movers, a curated roundup of small and micro-cap stocks surging on meaningful catalysts. We break down what’s driving the move, tap into rumors swirling on social media, and surface sharp insights from both industry experts and retail sleuths.
From this list, we select one standout stock for our Small Cap Winner Deep Dive, released the next day, where we take a closer look at the fundamentals, narrative, and technicals that suggest this winner could keep running.
Powered by our proprietary 4-element, AI-driven analysis system, our goal is simple: cut through the noise, remove the emotion, and help investors dominate the small-cap market with momentum-driven strategies—completely free.
Sign up for email alerts to get the moves before our social media followers.
Read Next: Why Nvidia’s Tech Investments Could Transform the Entire AI Innovation Ecosystem
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
