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AMC shares set for record open as ‘meme stocks’ surge

imageStock Markets30 minutes ago (Jun 02, 2021 05:21AM ET)

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(C) Reuters. FILE PHOTO: Three women use the emergency exit stairs of an AMC movie theater as a makeshift gym in Smyrna, Georgia, U.S. April 27, 2020. REUTERS/Elijah Nouvelage

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(Reuters) – Shares of AMC Entertainment (NYSE:AMC) Holdings Inc surged 28% in early deals on Wednesday, extending a rally and setting up to open at a record high a day after the company raised $230 million to cash in on a social media-driven trading frenzy.

The movie-theater operator’s stock traded at $41 after soaring more than 1,400% so far this year, leading gains among the group of “meme stocks” that include video game retailer GameStop (NYSE:GME) and BlackBerry (NYSE:BB) Ltd.

The company said on Tuesday it had issued 8.5 million shares to Mudrick Capital Management, bringing its total share sale since December 2020 to about $1.5 billion.

A source later told Reuters that Mudrick had sold off its AMC stake at a profit, believing the stock was overvalued.

Still, message volume related to AMC climbed more than 7% on trading-focused social media site Stocktwits, with about 95.8% of messages reflecting a positive sentiment.

At $41, AMC’s shares are trading at more than 10 times analysts’ median price target of $3.70, according to Refinitiv data.

BlackBerry’s U.S.-listed shares rose about 20% in pre-market trading, bringing their total yearly gains to more than 75%. GameStop was up 4.5%, while Koss Corp jumped 13%.

AMC shares set for record open as ‘meme stocks’ surge

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