AMC Stock Soared on Meme Wave: How It Can Benefit Movie Theaters

You probably love memes – or, at the least, funny animal
videos on the internet. Or, as a last resort, comedy movies with Leslie
Nielsen. Anyway, the point is that meme stocks have unexpectedly made a
comeback. GameStop and AMC, which became household names in the past, are now
capturing headlines. In this piece, we’ll talk about the rise of AMC stocks and
how this volatility might benefit the movie theater chain.

The blogger Keith Gill has returned to Twitter, now
rebranded as X, since his last “roaring” appearance. Exactly, he was partly
responsible for the volatility of meme stocks in 2021. Apart from scrolling
through tweets to stay updated on trending assets, you can check it using the list
of top stock gainers. It will help you to react to market
movements in time.

Let’s take a look at the chart illustrating the recent
price fluctuations of AMC stock.

To be fair, we can’t ignore GameStop’s movements, so we’ve
added it to the same chart. As you can see, GameStop stock experienced an even
more impressive
boost.

However, despite extreme volatility and over 100% growth
these days, AMC stock is far from its former highs. The chart below reminds us
of more prosperous times. Not only did the price stop reaching significant
highs, but it also fell below double digits at one point. For instance, one AMC
stock was about $3 last month before the recent surge.

In other words, the company’s financial situation is still
shaky. That’s why the chain of movie theaters started a share
sale at the end of March. This sale concluded
right on the boosting Monday. So, most of the stocks were sold at a low price,
but posts from Roaring Kitty helped AMC to improve the situation a bit. The
average price was $3.45 per share.

The previous AMC rally helped the company avoid bankruptcy.
Now, the company is struggling with debt again. This recent hike in stock price
could provide a positive boost. However, it doesn’t mean stock won’t drop to $3
again. If you want to profit from these movements, you need to track market
news and do your research before making any trades.

This article was written by FL Contributors at www.forexlive.com.