AMC becomes the most loved stock
The ailing cinema business AMC Entertainment has become a target for Wallstreet. After the pump of the Gamestop share a few months ago, Reddit put the share business on hold for a while. Now the platform strikes again with complete force. For a few days, the small investor has been working on the shares of the ridden AMC Entertainment. The result: In just two weeks, the AMC rate has risen by 250 %. At the beginning of the year, the unit price was less than three dollars; it is currently almost 50 dollars.
The stock market experienced a minor landslide in winter when the Reddit platform took up the fight against the shortsellers and propelled the price of the game retailer GameStop up. With a purpose to cushion losses, hedge money, which had previously wager on a falling cost and bankruptcy, have been forced to purchase again their positions. The plan worked: small investors benefited from the dizzying price pump, they burned their fingers in the short squeeze and suffered billions in losses through the piracy on the market.
AMC Has Gotten Into The Sights
And history is currently repeating itself, even if the scene of the crime is different. This time the no less ailing company AMC Entertainment has gotten into the sights. The cinema platform was already in crisis before the pandemic. The pandemic closure of the chain has not improved the situation for the company.
It's clear that the AMC rally creates a tremendous gap between analysis and reality. It is more than questionable whether the cinema trade, which used to be already unwell earlier than the Corona, might be one of the vital successful firms after the pandemic. For AMC Entertainment, however, the capital grant on the market offers the chance to reposition the company for the future. GameStop also seems to have taken the chance to redirect itself on the crypto currency. For example, the company is currently developing an NFT that will serve as a second pillar to ensure competitiveness for the future.
The contents of this article are for informational purposes only and are not investment advice.