The Only Move for AMC That Makes Sense
AMC Entertainment (NYSE: AMC) has been one of the biggest surprises of the year.
The meme stock is up more than 2,300% this year -- not because of its business performance, but because millions of investors on Reddit and other social media platforms have taken up an interest in the stock, banding together to push the price higher through short squeezes and pumping the stock more generally.
Those massive gains have come even as AMC has significantly diluted shareholders over the last year in order to stay afloat during the pandemic. Shares outstanding have ballooned from around 100 million a year ago to 500 million as of June 3. Normally, such share dilution would send investors scurrying, but in the upside-down world of meme stocks, the new offerings have had the opposite effect.
Source Fool.com
