Shares in AMC Theatres and GameStop popped early Monday after meme stock investor Roaring Kitty appeared to post a shot on X and Reddit showing a $116 million stake in the later.
Stock in parent company AMC Entertainment Holdings, led by CEO Adam Aron, rose by $1.01, or 23 percent, to $5.34, in pre-market trading as the company continued to benefit from epic trading of GameStop shares. That followed meme stock investor Keith Gill apparently revealing a bullish position in GameStop in addition to an options bet.
Shares in AMC rose in the wake of Gill’s posts around GameStop, allowing the cinema giant to use its meme stock mania to potentially raise fresh cash. The latest speculative buying of AMC shares follows Gill resurfacing online after a three-year absence and rekindling interest in the cinema chain’s shares.
His Sunday night post on X, formerly Twitter, received nearly 1 million views and sent shares in GameStop up $17.93, or 77 percent, on Monday to trade pre-market at $41.30.
The cinema chain has seen its stock dramatically rise and fall since 2021 due to retail traders encouraged by Reddit, where Roaring Kitty holds sway, embracing company shares as a meme stock. Online traders buying AMC shares and sending its value skywards, at one point to $35 in 2021.
That meme stock mania has allowed the company to raise fresh cash with stock sales for a financial lifeline. Representatives for AMC Theatres were not available for comment over the latest dramatic rise of AMC shares amid the return of GameStop meme stock mania.
