As the popularity around the GameStop stock began to die down, another stock has been gaining a lot of attention, the AMC stock. Both the GameStop stock and the AMC stock can thank one thing for their increase in value: Reddit. Users on Reddit rallied on the website and encouraged others to buy the AMC stock, leading to an increase in the price and value of the stock. The reason why traders on Reddit did this is that they are angry at how hedge funds benefit off of corporations’ stocks that are decreasing in value. By increasing the demand and increasing the price of a stock that is struggling, they cause hedge funds to have major losses.
Due to this event, AMC set a record high closing price of their stock at $62.55 on June 2nd, nearly doubling its last highest closing price of $35.86 in 2015. AMC’s stock even hit a peak price of $72.62 at some point (CNBC). However, AMC began to drop significantly shortly after this event and went as low as $48 on the 4th of June, but it can be seen making a comeback as of Monday the 6th.
AMC’s CEO, Adam Aron, capitalized on the chance he has been given by accepting the status of AMC as a meme stock and embracing the traders. The traders call themselves “apes” and refer to Aron as the “silverback gorilla” or as the leader of the group. Aron can maintain his popularity by acknowledging “the apes” on social media platforms like Twitter and praising them.
- AMC’s stock rose in popularity in a similar fashion as to how GameStop did: through Reddit users
- AMC hit a record closing price of $62.55 and a peak price of $72.62
- AMC’s CEO is able to maintain his and the company’s popularity by accepting all of the memes and acknowledging them