It looks like the meme stocks rally is far from over yet. AMC Entertainment Holdings Inc (NYSE: AMC) jumped another 20% on Friday morning to trade at $31.50 per share (£22.26 per share) – a record high since January 2017. On the weekly chart, the Reddit favourite is now about 150% up. AMC Entertainment had started the year 2021 at only $2.01 per share.
According to FactSet, AMC Entertainment’s 30-day trading average in terms of volume currently stands at just over 100 million shares. On Thursday, roughly 700 million shares of the American movie theatre chain were traded, more than any other stock listed on the New York Stock Exchange.
AMC topped GameStop as WallStreetBets’ favourite
As per the Bank of America, AMC has now topped GameStop as WallStreetBets’ favourite. Data from S3 Partners highlighted on Friday that AMC’s bull run had cost $1.3 billion in loss to short-sellers this week.
Following an unprecedented hit to revenue due to the COVID-19 crisis, AMC now values its debt at $5 billion and deferred lease repayments at $450 million. Earlier this week, Chinese multinational conglomerate Dalian Wanda Group said it sold its remaining stake in AMC Entertainment Holdings.
Commenting on AMC, LightShed Partners’ co-founder, Rich Greenfield, said on CNBC’s “SquawkBox”:
“All that really matters here long term, this company is never going to make cash again. They will never generate cash with their current capital structure. It traded at 7 times EBITDA pre-pandemic. It’s now trading at 25 times EBITA right now, and it’s in a worse position today with the changed industry. This just defies all logic.”
GameStop is up by a relatively mild 45% on the weekly chart
In comparison, GameStop Corp (NYSE: GME) jumped close to 4% in premarket trading on Friday and lost at least half of the intraday gain on market open. At $175.85 per share, it is about 45% up on the weekly chart. GameStop had hit a high of $348 per share in the last week of January. On a year-to-date basis, the gaming merchandise retailer is now up close to 1,400% in the stock market.
At the time of writing, GameStop is now valued at $18.19 billion. The news comes a day after the Texas-based company said it was ready to enter the NFT space. GameStop launched a new website to build an Ethereum-based non-fungible token platform.
The post Friday’s meme stock recap: AMC soars 20%, GameStop inches higher appeared first on Invezz.
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