Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

AMC Set For New Records, Up 20% Premarket, Blackberry Gains 30%

Published 2021-06-03, 06:12 a/m
Updated 2021-06-03, 06:12 a/m
© Reuters

© Reuters

By Dhirendra Tripathi

Investing -- Meme stock favorite AMC (NYSE:AMC) looked set for another blockbuster run Thursday, rallying 20% in the premarket, a day after shares more than doubled in a single session.

BlackBerry (NYSE:BB) was up too, rising 30% in premarket, while GameStop (NYSE:GME), the original meme stock darling, gained 3%, in line with its relatively subdued trend in recent times.

The meme stock rally has been driven by by retail inventors acting together to bid up shares of heavily shorted companies, forcing short sellers to unwind their bets at a loss.

AMC has done much more recently beyond offering free popcorn to investors who sign who sign up for its AMC Investor Connect, an initiative to engage directly with its sizable retail shareholders, to attract attention but this demolition of trading records and stock market highs has left many baffled.

In less than a month, AMC has raised $658.5 million in equity. Part of this money will be spent on new leases and revamping old theatres.

But the pandemic has caused its long-term debt levels to soar to $5.4 billion as of the first three months of this year from less than $2 billion in 2016. And it’s still losing money, with analysts expecting another $100 million to go over the next 12 months.

Many experts have warned that retail traders, who are looking for quick money, could end up hurting themselves as the fundamentals of the companies aren’t strong enough to justify current valuations.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.