Trading frenzy in AMC stock may stave off bankruptcy but cinema operator still faces years of recovery

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AMC stock soared 250% on volume over more than 1 billion shares on Wednesday.

The trading frenzy that has propelled the shares of AMC Entertainment Corp. up more than 600% in the year to date may have saved the cinema operator from bankruptcy but the company is still facing formidable challenges after being hammered by the coronavirus pandemic.

AMC AMC, -56.63% is one of the many stocks that have been swept up in the short squeeze in shares of videogame retailer GameStop, which has skyrocketed more than 1,600% in the past two-plus weeks amid support from investors on Reddit’s WallStreetBets message board.

Those same investors are now urging one another in today’s Reddit thread to make AMC the next GameStop GME, -44.29%, to create a short squeeze that will “take it to the moon,” telling others to “buy and hold and not sell.”

 

Source:https://www.marketwatch.com/story/