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.”
Inbound tweets ask over and over for a “share count.” AMC has done a share count 6 times in the past year. We know of 516.8 million AMC shares. Some of you believe the count is much higher. As I’ve said before, we’ve seen no reliable info on so-called synthetic or fake shares.
— Adam Aron (@CEOAdam) June 15, 2022
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.