AMC Entertainment (NYSE: AMC) stock is seeing a notable surge in early trading on Monday, reigniting the meme stock rally that had cooled off following a peak in mid-May.
The revival of the meme rally follows a disclosure by Keith Gill, famously known as “Roaring Kitty,” regarding his substantial position in GameStop (GME) on the r/Superstonk Reddit forum. Gill shared a screenshot indicating his ownership of 5 million GME shares valued at $115.70 million, alongside 120,000 call options valued at $65.70 million with a strike price of $20 and exercisable on June 21. Notably, these call options were purchased at $5.48 per share.
Additionally, a social media user shared Gill’s final trading update posted on the r/Wallstreetbets Reddit thread before his social media hiatus in April 2021. The update indicated Gill’s ownership of 200,000 shares valued at $30.94 million at that time.
In a cryptic move late Sunday, Gill posted a picture of a reverse card from the game “Uno” on X, adding intrigue to the ongoing developments.
Analysts and data experts have suggested that this iteration of the meme stock rally may differ from previous occurrences. Vanda Research pointed out that “meme 2.0” might not replicate the events of 2021, citing relatively lower retail participation and better-prepared hedge funds compared to three years ago. This suggests a potentially altered landscape for meme stocks and their impact on the market.
AMC Entertainment (NYSE: AMC) Stock Reaction
As of 09:54 a.m. (Eastern Time) Monday, AMC stock traded at $4.91, marking a 13.65% increase compared to the previous trading session.
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