Looking at the chart for 6 months, you can see AMC Entertainment (AMC) action shot on May 21, 2021. The price at that time was $12.08 and jumped sharply to the value of 62.55 but still fell to 49.34 (June 9, 2021).
AMC Entertainment was one of the year’s biggest surprises. Meme stock is up over 2,300 percent this year, not because of the company’s performance, but because millions of investors on Reddit and other social media platforms have expressed interest in the stock and have banded together to drive up the price through short bets.
These enormous profits have occurred despite AMC’s massive dilution of shareholders over the last year in order to stay afloat during the pandemic. As of June 3, there was 500 million stock outstanding, up from roughly 100 million a year before. Normally, stock dilution raises investor concerns, but in the world of Internet stocks, the new offerings had the opposite impact. At this point, selling more stocks appears to be a simple process, as the large gain in AMC’s stock price has effectively provided the firm with free money. Although recovery is far from assured, the path to it is at least clear.
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Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.