Adam Aron Sparks AMC Stock Controversy With Share Count Tweet

  • AMC (AMC) is down more than 9% today following a somewhat cryptic tweet from CEO Adam Aron.
  • The tweet set off a Twitter (TWTR) storm from members of Reddit's infamous r/WallStreetBets.
  • Many retail investors are out in full force today, reiterating their faith in AMC stock and accusing Aron of miscounting shares.
AMC theater in Glendale, Arizona. AMC stock.
Source: JJava Designs / Shutterstock

AMC (NYSE:AMC) stock is down more than 9% today after CEO Adam Aron earned the wrath of a certain subreddit. A seemingly innocent clarification tweet from Aron over AMC share numbers has turned the “apes” at r/WallStreetBets against the executive.

On Wednesday, Aron tweeted out in response to requests for a share count. The CEO said the company is aware of its roughly 500 million shares in circulation, with “no reliable info on so-called synthetic or fake shares.”

To those out of the loop, the message may seem strange or bizarrely targeted. In reality, the CEO is addressing a sort of conspiracy within the mischievous world of meme-stock enthusiasts.

AMC Stock Falls as Aron Loses Favor of Reddit ‘Apes’

As many recall, AMC stock was subject to a spontaneous boom in 2021. This was the result of an organized short squeeze from Redditors on r/WallStreetBets. The company saw its share price soar from around $12 to past $70 at the peak. AMC wasn’t alone, however; the stock joined the likes of a number of meme stocks.

One of the narratives among Redditors at that time was that they were hitting the “bad guys.” That is, they were fighting back against the hedge funds, stock shorters and Wall Street tycoons cashing in on the downfall of American businesses.

Alongside this good versus evil theme came a conspiracy that a sort of shadow syndicate of Wall Street big wigs created “synthetic” or fake shares of AMC to exercise control of the stock from behind the scenes. This is likely the conspiracy Aron quietly addressed in his tweet Wednesday.

There are plenty of examples among the tweets tagging $AMC today of AMC long-holders doubting Aron’s claims. The prevailing theory is that Aron didn’t include loaned shares to those shorting the company in the share count calculation.

Whether or not today’s AMC stock action proves fruitful for retail and Reddit hopefuls remains to be seen.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/adam-aron-sparks-amc-stock-controversy-with-share-count-tweet/.

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