AMC Meme Revival Propels It Toward Longest Streak Since 2018

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AMC Meme Revival Propels It Toward Longest Streak Since 2018

Phil Serafino and Bailey Lipschultz
·2 min read

(Bloomberg) -- AMC Entertainment Holdings Inc. surged in U.S. premarket trading, heading for an eighth straight advance amid day traders’ renewed interest in meme stocks.

AMC climbed 8.2% to $15.10 at 7:24 a.m. in New York while XpresSpa Group Inc., another favorite of Redditors earlier this year, rallied 10% to $1.34 and penny stock Naked Brand Group jumped 8%.

Social media has powered the latest gains, with the hashtag #AMCSqueeze trending over the past week on Twitter, in a call to recreate the heavy retail buying in January that forced investors out of bearish positions.

With more than 2.25 million shares traded early Tuesday, AMC was the most active premarket stock that trades at a a value greater than $1, according to data compiled by Bloomberg. The stock has soared 55% in the past seven sessions, matching its longest streak of advances since July 2019 and pushing it to a two-month high.

The company has soared as its management embraced individual investors and internet traders after Chief Executive Officer Adam Aron cheered the stock’s resurgence on a quarterly earnings call. The movie-theater chain has continued to rally even after announcing on Thursday that it had raised about $428 million by selling shares.

B. Riley analyst said Friday that the additional cash lowered the need for it to raise even more funds ahead of a rebound for the movie theater industry. CEO Aron said in the statement the money will allow it to better “tackle the challenges and capitalize on the opportunities that lie ahead.”

(Updates with additional details in final two paragraphs, share movement throughout.)

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