The stock skyrocketed 190% on Wednesday, making it the third-biggest gainer on Wall Street, and putting it on track for the highest close since November 2018. Shares of struggling retailer Express were among those caught up in the apparent short squeeze, according to Wedbush analyst Jen Redding. Gamestop has not responded to a request for comment. The Securities and Exchange Commission declined comment. “Management deserves credit for opportunistically taking advantage of the environment to gather the resources to stave off bankruptcy,” he wrote.ĪMC did not respond to email and phone requests for comment. Read: Is GameStop’s wild ride due to market manipulation by social-media users - or are they exercising free speech? Like the other names caught up in this speculative frenzy, AMC has had a high level of short interest as a percentage of the float, which stood at about 69% according to latest data, although Monday’s share sales will take that percentage down. “The company’s market capitalization is nearly double what it was prior to the coronavirus.” “The company’s share count will be 337 million when that sale is completed, which is up from 58 million in October,” O’Rourke wrote in commentary. See also: How you could lose everything by short-selling stocks, whether it’s betting against GameStop or Tesla The company conducted another at-the-market offering of 50 million shares Monday, he said. Mike O’Rourke, chief market strategist at Jones Trading, said one could argue that the Reddit’s WallStreetBets community has saved AMC from a pandemic-driven bankruptcy. See also: Why cinema will survive the coronavirus pandemic See now: Why an options-trading frenzy by small traders stirs memories of the stock market’s dot-com bubble This means that any talk of an imminent bankruptcy for AMC is completely off the table.” “After securing more than $1 billion of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917 million capital infusion to bolster and solidify our liquidity and financial position. “Today, the sun is shining on AMC,” Chief Executive Adam Aron said in a statement. On Monday, AMC announced it had raised $917 million in equity and debt to help it get through a coronavirus-impacted winter. With volume ballooning to 585.6 million shares, the stock was also the most actively traded. The crisis left most of AMC’s theaters in lockdown for months in 2020, deterred major studios from releasing new blockbusters and forced those theaters that were open to operate at limited capacity.ĪMC’s stock blasted 224% higher in morning trading Wednesday, enough to make it the biggest gainer traded on major U.S. In the case of AMC, the world’s biggest cinema operator, that has meant gains of more than 680% in the year to date, even as the company has conducted dilutive capital raisings and its core business remains greatly imperiled by the coronavirus pandemic. The stock traded as high as $354.83 intraday, compared with the Jan. Quote pages are still available at no additional cost.GameStop shares charged up 135% in morning trading Wednesday. The MarketWatch subscription is for news coverage. Can I still visit quote pages without a subscription? You can cancel your membership at any time through our self-service portal. We are offering our readers access at US $1 for the first 4 weeks for a limited time only. You will see fewer ads and experience faster load speed.Īs a paid subscriber you will also gain access to exclusive MarketWatch coverage and special reports. Moreover, a subscription entitles you to an advertising-light reader experience. You will gain full access to all of MarketWatch's original reporting. To be a MarketWatch subscriber is to support our journalism and experience MarketWatch at its best. What are the membership benefits of a MarketWatch subscription? Support our journalism and join us on the journey to a better financial tomorrow. We invite you to subscribe to MarketWatch. Every day we work to provide the information you need to achieve success in money and in life. Our mission is to make sense of what the news means to you and your money. Why does MarketWatch require a subscription?
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