Core Viewpoint - Meme stocks, including AMC and GME, experienced a significant reversal after a substantial rally earlier in the week, with AMC taking steps to reduce its long-term debt through a private debt/equity swap agreement [1][4]. Group 1: AMC Theaters - AMC entered a private debt/equity swap agreement to exchange 23.3 million shares of newly-issued stock for $163.9 million worth of company bonds due in 2026, with shares issued at an average price of $7.33 per share [1]. - The theater chain's long-term debt was reported at $8.6 billion at the end of 2023, indicating a substantial financial burden [1]. - AMC raised $250 million by selling 72.5 million shares at an average price of $3.45 per share earlier in the week [1]. Group 2: Market Analysis - Analyst James Goss noted that the recent meme stock surge provides AMC with an opportunity to raise funds, which could support liquidity and debt reduction [2]. - The first quarter of the year was described as a "difficult start," and the second quarter is also off to a slow start, highlighting ongoing challenges for AMC [2]. - Goss expressed hope that AMC could eventually achieve a capital structure that would attract institutional support, although significant uncertainty remains due to high leverage [2]. Group 3: Meme Stock Performance - Meme stocks, including AMC and GME, saw sharp declines after a week of significant gains, with AMC stock falling 9.8% and GME stock tumbling over 13% [4]. - GME stock had soared 179% for the week as of Tuesday's close, while AMC shares had rallied more than 135% [4]. - Other meme stocks like Virgin Galactic and Koss also experienced declines, with Koss plummeting nearly 19% after a 92% increase earlier in the week [4].

Key PointsAMC stock is attempting to join GameStop in what could be the revival of meme stocks.Focusing on fundamentals, investors will soon find out why these stocks fall under the 'meme' category.Facing severe dilution in AMC's lack of cash flow, investors could be better off without this added risk.5 stocks we like better than SquarespaceThe meme stocks saga of 2021 marked one of those historical moments in financial case studies. Unfortunately, it will be tied to those like the Tulipmania during the 160 ...

On May 10th, large volumes of deep out-of-the-money GameStop options were purchased. (Photo ... [+] Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesA familiar phenomenon has resurfaced, capturing the attention of investors and analysts alike. Meme stocks, those unconventional, often-struggling companies that garnered a cult-like following among retail traders, are experiencing a renaissance reminiscent of their meteoric rise in 2021.GameStop G ...

GameStop and AMC logged further gains in premarket trading as the broader meme stock frenzy fizzled early on its third day, with Blackberry shares flat and Koss edging lower.Brick-and-mortar video game retailer GameStop was up 10.16% at 6:40 a.m. E.T., while movie theatre chain AMC rose 9.20%.Other so-called "meme stocks" were mixed in pre-trading. Shares of one-time popular smartphone maker BlackBerry were up just 0.58% and headphones manufacturer Koss fell 4.39% at 06:42 a.m. E.T.The meme stock craze resu ...

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Amidst the recent meme stock rally that has seen GameStop (NYSE: GME) and BlackBerry (NYSE: BB) make exceptional price gains in a short time, the shares of AMC Entertainment (NYSE: AMC) are among the winners of the bullish momentum, and more advances could be in store.As it happens, AMC stock has recorded massively high options trading activity, resulting in the company raising around $250 million of new equity capital through the sale of 72.5 million shares at an average price of $3.45 as part of its previ ...

The stock market is in the thick of another meme stock frenzy, sparked by Sunday night's online return of one of the key figures of the 2020 and 2021 craze that sent GameStop (GME) shares to record highs. GameStop has been one of the biggest winners of the frenzy this week, along with AMC Entertainment (AMC). Those and other meme stocks have shot higher following the online return Sunday of one of the prominent drivers of the earlier meme craze. Keith Gill, known by his online persona of "Roaring Kitty," p ...

Tuesday, May 14th, 2024The Nasdaq closed at a new all-time high today. Gaining +122 points, +0.75%, brought the tech-heavy index up to 16,511 for the first time. It’s a record previously reached less than a month ago, but before that goes back to November 2021. The other major indices were positiver today, as well: the Dow grew +126 points, +0.32%, while the S&P 500 rose +0.48% and the small-cap Russell 2000 was +1.10%. Considering the challenges before the regular trading session, this demonstrates a bulli ...

CNBC's Jim Cramer said investors should get out of stocks like GameStop and AMC, both of which saw huge rallies this week triggered by social media."When I see meme stock mania taking over again, led by GameStop and AMC, I need to remind you that this is irrational," he said. "There's no way these stocks should reach such elevated levels on their own."AMC and GameStop soared after "Roaring Kitty," the man who helped bring on 2021's enormous GameStop short squeeze, posted online for the first time in about t ...

For the past two days, many eyes have been focused on the meme stock rally that has overtaken markets. Keith Gill, who is credited with helping start the GameStop (NYSE:GME) squeeze of 2021, decided to return to social media on May 12. Also known by the username Roaring Kitty, Gill posted a seemingly random hand-drawn meme which quickly sent retail traders into a frenzy. As a result, meme stocks are now surging this week.When GME rises, AMC Entertainment (NYSE:AMC) is usually close behind. In fact, AMC actu ...