AMC Networks (NASDAQ:AMCX) shares just hit a 52-week high, climbing as much as 20% as the opening bell. Although the company does have some good news of its own, it looks like the rise in AMCX stock is just a mix up. If you bought AMCX today, did you mean to buy AMC Entertainment (NYSE:AMC)? Here is what you need to know.
AMC Entertainment is one of the top tickers to watch this morning, up more than 200%. The movie theater operator has been struggling thanks to Covid-19. Film releases have faced delays, and business closures have kept theater doors shut. Plus, many consumers are simply not willing to pack into a theater with strangers and their germs. However, posters on r/WallStreetBets are convinced AMC stock could be the next GameStop (NYSE:GME). That is because a turnaround narrative is present, especially with the vaccine rollout underway. Plus, with a high short interest, we could see similarly powerful price action.
However, as AMC stock soars, it looks like some investors are mistakenly pouring into AMCX stock.
To be fair, AMCX and AMC are confusingly similar. While AMC Entertainment represents the movie theaters, AMC Networks represents a portfolio of cable brands. It owns AMC, BBC America, IFC, SundanceTV as well as streaming services Acorn TV, ALLBLK and Shudder. Plus, the company is behind the popular cable hit The Walking Dead. Clearly, AMC Networks is an interesting company. However, it is not the primary focus of Redditors trying to mirror astronomical gains in GME.
So what do you need to know as investors sort out AMC stock and AMCX stock?
AMCX Stock Soars on Reddit Confusion
AMC Networks did have some news of its own yesterday when it shared that it was redeeming senior notes due in 2022. According to a press release, the company is sharing its intention to redeem the $400 million principal amount of its 4.75% senior notes due in 2022. It is also redeeming $600 million of an outstanding $1 billion principal from senior notes due in 2024. AMC Networks will redeem the 2022 notes at a 100% redemption price, while the 2024 notes are at a 102.5% redemption price.
Despite this press release, investors can likely thank Reddit for the rise today in AMCX stock. Just think about other stock market confusions in recent days! Elon Musk sent up Signal Advance (OTCMKTS:SIGL) when he tweeted about the messaging app Signal. And earlier in the pandemic, investors piled into Zoom Technologies (OTCMKTS:ZTNO) instead of Zoom Video (NASDAQ:ZM).
With AMCX stock already pulling back down, chalk this up to just another symptom of the Reddit bug.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.