AMC extends 8-day winning streak to 66% as Reddit chatter around meme stocks picks up
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Isabelle Lee
May 18, 2021, 19:21 IST
Frederic J. Brown/AFP via Getty Images
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.
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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.
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."
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