AMC will reward Reddit investors with popcorn for tripling capitalization

AMC, which owns a large US cinema chain, has decided to reward small investors, thanks to whose hype its capitalization has tripled in the last month, by offering free popcorn (and a large one) at the chain's cinemas. Such interaction is a new trend of hype companies, writes Bloomberg.

AMC quotes have soared 1400% since the beginning of the year. The company was recently able to sell $230 million worth of shares to Mudrick Capital Management and, at least for a time, bounce back financially, thanks to its high valuation.

Investors on Reddit (see the relevant section here ) weren't embarrassed that Mudrick quickly and profitably dumped the entire stake, at the same time directly calling the company overvalued. On Wednesday, June 2, AMC quotes after the first battle of retail investors with the giants of Wall Street rose by another 27%, to an all-time high, and brought the company's capitalization closer to $ 20 billion. This is much more than GameStop, the unwitting "hero" of the first battle. retail investors with Wall Street giants.

Unlike GameStop, AMC CEO Adam Aron immediately accepted his company's status as a hype one and even started talking to investors on Reddit-style Twitter. “This is not a crazy share dilution, but a very smart fundraiser to grow our company — or rather, for those of you who follow me on Twitter, your company,” defended Aron the deal with Mudrick. Hang in there naysayers, AMC is playing offensive again!

The head of the company has much to thank small investors for: at the beginning of the year, AMC was on the verge of bankruptcy. As of early March, it already had 3.2 million individual investors, 80% of the investor base. “Read what they write,” Aron recommended to market analysts. The latter speak dryly about what is happening: “fundamentals do not determine the current level of quotations in any way (which obviously makes sense for the Reddit crowd),” Bloomberg quotes Mark Levin from Asterisk Advisors.

Apparently, Aron knows what he's doing: the Reddit community enthusiastically accepted the news about the free popcorn. “More important than popcorn is that we, the shareholders, have a direct line of communication with the CEO. Many are worried about Reddit itself, not to mention that all the media is against us, ”writes one of them.

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We talked about how the army of investors rocked the dying GameStop to $ 7 billion and laid the foundation for the phenomenon of hype stocks, we talked about here .