Retail Investors Bid up AMC Stock. The Benefits Are Flowing Now.

Before retail investors jumped in and bid up the price of AMC (NYSE: AMC) stock, the company stood in real danger of running out of cash. In the first quarter ending March 31, AMC burned through approximately $120 million per month. The coronavirus pandemic was wreaking havoc on its business, forcing it to close its doors to moviegoers and lose hundreds of millions of dollars in potential revenue, yet ensure that its properties were maintained while its staff was paid.

Management's top priority remained liquidity management, and as on March 31, AMC had $1 billion in liquidity. After all, the race against the coronavirus over the last 14 months has put the company in an unenviable position. So how did AMC end Q1 with the highest quarter-ending liquidity in its 101-year history? That's where retail investors come in. 

AMC stock is up over 2,000% in 2021. Image source: Getty Images.

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Source Fool.com