AMC Entertainment is actually a meme stock that astonished Wall Street. This rallied double-digit numbers last Monday in the tough field of movie theater steam. According to the latest news, AMC Entertainment jumped more than 20% on Monday, which resulted from an 80% of rally in the previous week.
AMC has defrocked GameStop and became the star of the Wall Street Bets forum. Later, we came to know that AMC Shares was nearly closed at 19.8% higher at $55 on June 7, 2021, that is on Monday. In present times, AMC has achieved more than 120% only in June, after a 160% advance in May which resulted in a rally to 2500%. Hence this growth has created a record of $72.62 last week.
Other meme stocks have also traded higher last Monday. Bed Bath and Beyond have achieved 7.2%, BlackBerry has gained 13.8% and GameStop has nearly gained 14%. On the other hand, TD Ameritrade announced on Sunday that the margins have been increased on AMC and GameStop. But this increase has been done with a particular condition. The condition that has been offered is the investors have to purchase all the securities only in cash. Not only this, but the firm announced that there will be additional requirements regarding opening trades on AMC Entertainment.
Later, AMC has announced 18% of its float shares with 5% for an average US stock. According to few detailed data from S3 Partners, short-sellers complaining against AMC Entertainment has led to its losses last week.
But according to various reports, we could get to know that AMC Entertainment without a doubt took the advantage of this massive rally by selling 20 million shares last week through two different deals. By these deals, they have nearly generated $800 million in cash. This is not the end. AMC Entertainment’s CEO Adam Aron has said in an interview that he wants to sell more 25 million shares. After this news, there has been no update, since AMC Entertainment has not yet announced its latest plan or way of selling more shares.
I hope now you all know about the reason behind AMC Stock Rise more than 20%.
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