Movie theater chain AMC Entertainment has had a tumultuous ride since the pandemic began.
The company’s theaters temporarily closed, leading to a collapse in revenue and placing the chain on the verge of insolvency.
That’s when retail traders rallied behind AMC stock, sending the shares soaring in a bid to undermine sophisticated Wall Street investors who had bet on the stock to implode.
Now, with movie theaters reopened and moviegoers returning to see shows, there is some hope on the horizon. Yet the company’s financial situation remains rocky.
Still, the company’s stock is on a run, having more than tripled in the last month. The stock jumped nearly 30% on Wednesday alone and has surged roughly 1,700% in 2021.
Here’s what you need to know about what’s happening with AMC.
Why is AMC stock rising?
In short, because retailer traders are loosely organizing a bid via social media messaging boards to drive up the company’s shares.
In recent days, the stock has also gotten a boost from a promising box office performance for movies like “A Quiet Place 2” and “Cruella,” raising hopes that more Americans may return to theaters as the pandemic continues to subside.
Traders are also apparently emboldened by news that AMC raised more than $230 million by selling 8.5 million shares of its common stock to Mudrick Capital Management. That was followed by a Bloomberg report that Mudrick had already moved to sell its stake at a profit, viewing the company as overvalued.
Typically news of a…
