Source: Morning Wrap
The meme stock AMC has gone crazy. Following our previous story, it jumped 95% on Tuesday.
95%! How come?! 📈
Well… it’s actually related to popcorn. On Tuesday, the cinema chain launched an investor portal for individual investors to sign up for their loyalty program, with the following perks.
- A large free popcorn! 🍿 Upon their first visit this summer, all registered investors can get a free large popcorn.
- Push the shareholder meeting later. AMC wishes to hear from more individual investors and decided to push their AGM later for more retail investors to join.
- And… more direct communications with individuals through Youtube and Twitter.
More losses for short-sellers: Following its 95% jump, the total loss incurred by short sellers on AMC has been widened to USD 2.8 bln.
- More retail investors joined the party now, including those from South Korea and India.
But it dropped 30% overnight at open? 📉
Yea, the price jump doesn’t last forever. Riding the price surge, AMC announced to issue an additional 12 mln shares for raising USD 700 mln. AMC said the money will be used to repay loans and acquire cinemas.
- While announcing, AMC discouraged investors from holding their stocks as it’s abnormal, “unless you are prepared to incur the risk of losing all or a substantial portion of your investment”.
Immediately after this announcement, AMC turned into -30% from +20% in the premarket session, and closed 18% lower.