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.
