Movie-theatre chain operator AMC Entertainment Holdings Inc. is one of those companies that have had a meteoric rise in its stock value in 2021, surging 2,659% this year alone.
AMC’s surge has been fuelled by individual traders on social media sites like Reddit, Twitter, and Discord who ganged up and drove the company’s stock value to the sky in an effort to hurt bigtime investors who are betting heavily on a return to Earth for it and other meme stocks like GameStop, Blackberry, among others.
Yesterday, Monday, June 14, 2021, AMC Entertainment (ticker: AMC) shares surged over 15% to kick off the week on a strong note amid a social-media campaign to push it above $60 a share.
The social media campaign I am referring to this time was dubbed #AMCDay. This hashtag was the third most popular trend on Twitter yesterday Monday as individual investors rallied behind this meme stock and try to influence others into trading it and push it above $60 a share.
As a result of the campaign, AMC shares rose 15.4% yesterday, Monday, June 14, 2021, and by the close of the trading session yesterday, the stock was trading at $57 a share. Fair play to all involved, really. The company, whose share price this month peaked at $62.55 on June 2 according to data from FactSet, is currently trading at $57 a share.
Meanwhile, GameStop, another popular meme stock that has gained 1,117% since the beginning of 2021, had unfavourable numbers in the stock market yesterday, falling 1.7% by the close of trading business Monday. GameStop (ticker: GME) is currently trading at $229.44 a share.
In contrast, the Dow Jones Industrial Average (DJIA), the benchmark S&P 500 index, and the tech-heavy Nasdaq Composite Index have rallied over 12%, 13.3%, and 10% this year so far.
The performance of so-called meme stocks has helped AMC build a market capitalization approaching $30 billion, though many analysts feel the company will struggle to match its valuation in earnings or revenue.
What is #AMCDay?
Don’t look at your calendar, you will not find it. #AMCDay seems to be a trend that was launched over a month ago to, as I mentioned earlier, rally support for AMC stock. However, it only gained notable traction on Monday, June 14, 2021, as “The Quiet Place” became the first movie to surpass $100 million at the U.S. box office in the pandemic era.
Bullish individual traders anticipate there will be an increase in the number of moviegoers as we get closer to the release of Marvel’s “Black Widow” movie which was set to make its debut in early July. Black Widow is set to simultaneously go live on Disney+ Premier for $29.99.
Backers of AMC shares view these developments as bullish. On social media platforms, fans touted the day and posted images of diamond hands, which is a term that defines a long-term investor in a popular asset, despite its vagaries.