Wednesday, February 8, 2023
HomeMarketAMC leads meme stocks GameStop and Bed Bath & Beyond higher

AMC leads meme stocks GameStop and Bed Bath & Beyond higher

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AMC Entertainment Holdings Inc.’s stock rose 6.5% before the opening bell on Tuesday, leading fellow meme stocks GameStop Corp. and Bed Bath & Beyond Inc. higher.

GameStop’s
GME,
+2.53%
stock rose 3.4%, while Bed Bath & Beyond
BBBY,
+1.60%
shares climbed 3.5%.

AMC’s
AMC,
+3.13%
stock has rallied since the company reported its 12th consecutive quarterly loss last week, sending its shares falling 7.7% last Wednesday. The movie theater chain and meme stock darling ended Monday’s session up 1.9%, outpacing the S&P 500 Index’s
SPX,
+1.70%
decline of 0.9%.  

AMC stock soars again after big ‘Black Panther: Wakanda Forever’ opening, but Cinemark and Imax shares fall

The company’s stock has been boosted by weekend box office numbers. On Monday AMC said more than 4.9 million people went to its theaters over the Thursday-to-Sunday weekend, marking the fourth-highest attended weekend of the year. Weekend box office performance was lifted by Marvel’s “Black Panther: Wakanda Forever,” the company said. 

AMC’s Preferred Equity units, or APEs
APE,
+4.20%,
were also rising before the opening bell on Tuesday, rallying 4.2%, after ending Monday’s session down 11.2%.

The APEs made their trading debut in August, sparking volatility and heralding the latest chapter in an eventful journey that took the cinema chain from a beleaguered pandemic victim to meme-stock phenomenon.

AMC, APEs lead meme-stock rally. CEO Adam Aron says AMC will still accept crypto.

The dividend hit an intraday low of $1.25 on Nov. 9 and an intraday high of $10.50 on Aug. 22. The APEs have fallen 76.2% since their debut.

Last week Wedbush analyst Alicia Reese said that when they were issued, the dividends gave AMC a great chance to get rid of its debt burden, but added that the company had “lost a golden opportunity.”

In September, AMC unveiled plans to sell up to 425 million additional APEs, sending the equity units toward a new low.

See Now: AMC missed ‘golden opportunity’ to pay down $5.4 billion debt with APEs, says analyst

AMC’s stock has fallen 56.1% this year, compared with the S&P 500 Index’s decline of 17%. GameStop’s stock is down 29.8% in 2022, while Bed Bath & Beyond is down 74.4%.

Credit: marketwatch.com

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