Home / Business / AMC Shares Rise as New Favorite Meme-Stock Returns in Form

AMC Shares Rise as New Favorite Meme-Stock Returns in Form

(Bloomberg) — AMC Entertainment Holdings Inc. returned to its uptrend in futures trading on Monday. By halting the two-day decline for the money-losing movie theater chain that has become a new favorite of meme-stock investors.

Shares were trading at $49.35 as of 8:17 a.m. in New York, up 3 percent from Friday’s close. The stock more than doubled in the first two days of the short weekend last week. before returning some of the profits after insiders took the money from the stock sell-off.

On the verge of bankruptcy a few months ago, AMC is now a beloved retailer. This year’s earnings are up 2,200%, ranking the largest among stocks on the Russell 3000 index. The stock gain has allowed the company to sell its shares and bolster its shaky balance sheet. AMC is building a “strategic war chest.”

; Eric Wold B Riley analyst B Riley wrote in a note.

“In addition to our ongoing expectation that AMC will be able to improve its balance sheet and future cash flows through debt buyback/payment. We can now see smaller exhibitor acquisitions or lease takeovers from problematic networks,” he said.

The upcoming reshuffle of the Russell index could cause problems for companies like AMC and GameStop Corp., which began gaining popularity in meme stocks in January. Expanded market capitalization of $24.6 billion and $18.4 billion, respectively. This puts them in line with the move from the Russell 2000 small-cap index to the largest American company’s Russell 1000 index.

Christopher Harvey, Wells Fargo analysts Gary Liebowitz and Anna Han wrote: “The graduation of these elite pilots could be the beginning of the end of their epic race. he”

(Updated with futures trading and analyst commentary starting in third paragraph)

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