Investors on social media have flocked to another meme-stock which caused its shares to rise. AMC Entertainment (AMC) stock surged past 100% to $72.62 on Wednesday as day-traders bought stock in the company. More than 500 million shares have been exchanged which led to a trading halt.
The movie theatre operator’s market value exceeded $30 billion, surpassing GameStop’s market value of $20 billion. On Tuesday, AMC reported that it had sold 8.5 newly issued shares to Mudrick Capital which later sold the shares for a profit, according to Bloomberg News.
AMC said in a securities filing that it raised $230.5 million through a stock sale to the investment firm. The company said it will use these funds for potential acquisitions, upgrading theatres, and deleveraging its balance sheet.
At the end of the trading day, AMC stock closed at $62.55.
Retailers like Bed, Bath and Beyond (BBBY) and Naked Brand Group (NAKD) also saw their shares rise by 45% and 17% respectively. Additionally, Blackberry (BB) stock surged 20%.
References:
1) McCormick, E. (2021, June 2). AMC stock surges more than 100% to record intraday high, market cap overtakes GameStop. Yahoo! Finance. https://finance.yahoo.com/news/amc-stock-surges-more-than-100-to-record-intraday-high-market-cap-overtakes-game-stops-172225445.html.
2) Whitten, S. (2021, June 3). AMC frenzy triggers trading halts as stock surges 100 percent. NBCNews.com. https://www.nbcnews.com/business/business-news/amc-trading-frenzy-triggers-trading-halts-stock-surges-more-80-n1269379.
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