AMC share price soars as it offers meme-stock investors free popcorn
Company is now 80 per cent owned by retail backers after buying frenzy
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The share price of cinema chain AMC surged again as it announced its army of new Reddit investors will get free popcorn.
Stock in the world’s largest cinema chain soared more than 120 per cent on Wednesday to reach a new high of more than $70 before falling back slightly.
The company’s stock market success has been boosted by retail investors from the popular WallStreetBets Reddit board, and has seen its share price increase by 1,100 per cent in 2021.
And AMC says that 80 per cent of the company is now owned by more than 3.2m retail investors.
Now AMC is reaching out to its new shareholders with the “AMC Investor connect” project, which is aimed at putting the company in “direct communication with its extraordinary base of enthusiastic and passionate individual shareholders.”
The company also revealed that its new-found popularity has seen its “retail shareholder base grow beyond 3 million owners” in recent months.
“Many of our investors have demonstrated support and confidence in AMC. We intend to communicate often with these investors, and from time to time provide them with special benefits at our theatres,” said AMC CEO Adam Aron.
“We start with a free large popcorn on us when they attend their first movie at an AMC theatre this summer.”
Investors will also get special discounts and invites to special screenings.
With more Americans now vaccinated the movie chain is hoping to have a successful end to 2021 after being crushed throughout the pandemic.
Over Memorial Day weekend, horror movie A Quiet Place II had a three-day opening of $48.3m, which is the biggest opening weekend for any movie in North America since the pandemic began last year.
AMC’s soaring share price came as it also announced that it had raised an additional $230.5m by selling 8.5m shares to Mudrick Capital management.
“With our increased liquidity, an increasingly vaccinated population, and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again,” added Mr Aron.
The cinema chain was among a host of stocks, including GameStop boosted by the WallStreetBets board in an attempt to hurt traders who had taken short positions in a bet against the then-struggling companies.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments