AMC Entertainment (AMC: NYE), a prominent player in the original meme stock saga, is back in the spotlight. The company is capitalizing on the renewed fervor surrounding meme stocks by raising a significant amount of capital through a strategic share offering.
At-the-Market Offering Bolsters AMC’s Finances:
This week, AMC completed an at-the-market (ATM) equity offering, successfully selling 72.5 million shares at $3.45 per share. This strategic move generated roughly $250 million in much-needed capital for the movie theater chain.
According to FinViz, short interest in AMC currently sits at around 18.8%. This substantial short interest, combined with a relatively small number of shares available for trading (float), creates an environment for significant price swings. This dynamic was a hallmark of the original meme stock rally and appears to be repeating itself.
Meme Stock Mania Returns – “Roaring Kitty” Back in the Ring?
The resurgence of meme stock mania appears to be fueled by a confluence of factors. The return of “Roaring Kitty,” a social media personality who played a significant role in the initial meme stock frenzy, has sparked renewed interest in these highly volatile stocks. Additionally, the potential for a short squeeze, where short sellers are forced to buy back shares at inflated prices, is adding to the excitement.
Conclusion:
Fueled by the meme stock frenzy and the ATM offering, AMC’s share price has skyrocketed in recent days. The stock has rallied by nearly 129% over the past five days and is already up by over 20% in premarket trading today.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
