Do you remember the GameStop-Robinhood scandal of January 2021? While retail investors and Redditors were taking GameStop “to the moon,” they also began to pump up AMC, Blackberry, Nokia and more. But when Robinhood and other platforms halted the buying and selling of these stocks, prices plummeted, and investors began to lose steam. Luckily for AMC, meme stocks are back on the rise, and the movie theater chain is all for it. In fact, CEO Adam Aron is embracing the new surges in price and using the capital to save his once nearly bankrupt company.
Started from the bottom
When the pandemic started, stocks fell like crazy, and people wondered indoor entertainment — such as movie theaters — would make a comeback. AMC, which was already struggling against the rise of streaming services, fell even harder. But thanks to the first meme stock bubble, AMC was able to shed $600 million in debt and end the first quarter of 2021 with about $1 billion in liquidity! Now, the stock price hit almost double its number earlier in the year, and it could still rise. Aron is grateful for the investors that believe in the company, saying, “They own AMC. We work for them. I work for them.”
Perks of being an AMC “Ape”
AMC is so thankful for the current valuation investors are giving the company that it launched a new platform on its website for its new retail investors, including perks such as free popcorn at any AMC theater! Plus, shareholders can have direct communication with CEO Adam Aron. As another nod to online supporters, Aron and AMC plan to donate $50,000 to the Dian Fossey Gorilla Fund — an organization meme investors supported in the past. As an investor, do these perks affect your decisions?
Of course, we aren’t telling you to invest in AMC or follow Reddit trader forums. Always do your due diligence and invest in what you think is best.