AMC Entertainment (NYSE: $AMC) Soars 94%+ on Monday As Roaring Kitty Tweets For the First Time in Three Years

AMC Entertainment Holdings, Inc. (NYSE: $AMC) is the world’s largest movie theater operator, with over 900 theaters worldwide. It also offers food distribution, ticket booking, and related services.

On Monday, May 13, 2024, AMC Entertainment stock soared over 90% despite the lack of a major announcement from the company. Many people have attributed its recent surge to the return of Roaring Kitty, who played a huge role in the meme stock phenomenon from a few years back.

Roaring Kitty Returns to Social Media

After a years-long hiatus, Roaring Kitty, whose previous tweet was in June 2021, marked his return to social media with a tweet on X. His return to social media saw meme stock pumping by double digits.

While some social media users have speculated that AMC’s recent surge has to do with the recent Reddit IPO, Roaring Kitty is the most likely catalyst for today’s surge.

In 2020, Roaring Kitty, whose real name is Keith Gill, heavily invested in GameStop shares. At the time, he stated that the stock was undervalued. He shared his opinions on r/WallStreetBets, which saw traders pile into the stock.

Throughout 2020 and 2021, GME and AMC shares soared to record highs as investors hyped up the stock. Hedge funds, which had heavily shorted the stocks, experienced a massive short squeeze.

GME shares have been rising in the past few weeks and are up over 73% today. In the past month, the shares have risen over 200%. The high volatility of GME shares today has led to trade being halted. Roaring Kitty’s tweet today could mark the return of meme stocks trading.

AMC Entertainment Stock Performance

As of 3:10 PM EDT on Monday, May 13, 2024, AMC Entertainment shares were up 94.97% at $5.67 per share. However, the stock is down 6.71% YTD, and 85.76% over the past 52 weeks value. It is trading at a 90.90% discount to its 52-week high of $62.30.

Over the past month, the short interest in AMC Entertainment shares has increased by 31.43% to 55.45 million as of April 30, 2024. That represents 20.13% of the floating shares and 20.06% of the shares outstanding.

Analysts Outlook on AMC Entertainment

Wall Street analysts are pessimistic about the future of AMC stock and give it an overall modest sell rating. They forecast a wide range for the stock, with a high of $8 and a low of $3.10. Based on the most recent price, the average forecast of $4.65 represents a 17.99% downside.

Should You Invest in AMC Stock?

The idea of doubling or tripling your investment overnight by putting money in AMC shares can be quite appealing. However, the stock market is complex, and anyone who attempts to outsmart it is unlikely to win.

Meme stock investors who got into the trend early made a lot of money. However, for everyone else, meme stocks are akin to gambling.

Instead of using social media hype to find the next winner, the best approach is a calm and collected one based on intense analysis and fundamentals. Opting for stable stocks with medium—and long-term growth trajectories protects you from potentially losing all your funds in one trade.

As such, while all stock investments carry some inherent risk, it is not recommended to invest a significant amount of funds in AMC stock in an attempt to get rich quickly. 

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