AMC extends 8-day winning streak to 66% as Reddit chatter around meme stocks picks up
- AMC extended its eight-day winning streak by 66% to its longest positive stretch in nearly three years.
- Reddit chatter surrounding the meme stock pushed the price higher.
- Spilling over to Twitter, #AMCSqueeze trended on Monday.
Shares of AMC Entertainment extended their eight-day winning streak to 66%, the longest positive stretch in nearly three years. The surge in buying comes as Reddit chatter surrounding the so-called meme stock gathers steam.
AMC rose 3% to $14.37 in early trading on Tuesday after a 7.5% surge the prior day.
Retail investors on Reddit have flooded various subgroups pushing for the short squeeze of the meme stock, including the famed WallStreetBets with its 10-million strong base and AMCstock, a group dedicated to the stock with around 175,000 members.
At around 2 a.m. ET Tuesday, a Reddit post with fictional cartoon character Homer Simpson parading with a sign pertaining to AMC received thousands of upvotes - the equivalent of like or love on the social media site.
Four hours before that in another group, a post encouraging people to hold "AMC to the moon" also garnered thousands of upvotes.
Spilling over other social media sites, #AMCSqueeze trended on Twitter on Monday.
The rekindled social media noise is reminiscent of the short-squeeze saga that captivated markets in January as an army of Reddit day traders sparred with hedge funds to push shares of the video-game retailer through the roof.
Among these stocks was AMC, the world's largest cinema chain operator, which rose by more than 300%. Other targets included GameStop, BlackBerry, and Bed Bath & Beyond.
The company CEO Adam Aron during the May 7 earnings call even thanked Reddit and Robinhood traders who boosted the company's stock earlier this year. Year-to-date, AMC has gained around 500%.
"These individual investors likely own a majority of our shares," Aron said during the call. "They own AMC. We work for them. I work for them."
On May 13, the company announced its sale of 43 million shares at $9.94 per share, raising approximately $428 million. The stock that day rose 16%.