We know we’re repeating ourselves, but we’re serious — AMC’s (NYSE:AMC) CEO knows exactly what he’s doing, and this isn’t the last you’ve heard of the soon-to-be-legendary AMC meme stock.
Even if AMC and other meme companies end up retreating into the shadows after their social-driven rise to fame, they’ll be remembered as part of the beginning of a new phenomenon — social momentum trading.
If you had invested in AMC after reading , you’d have roughly doubled your money, depending when you read this article.
Maybe the price will have dropped by the time you’re reading this. Or maybe it will shoot higher.
There’s really no telling with meme stocks, but we believe AMC in particular has short-term features that some others don’t.
Now could still be a great time to get on this entertainment company’s good side by buying their stock. But, as always, exercise caution, and be ready to sell for a profit when the time comes.
For now, the price appears to be finding its balance in the $60s. Earlier, it reached an all-time high of $72.62.
Other meme stocks are performing well today too, but not this well.
Crowd favorites such as BlackBerry (NYSE:BB) and Naked (NASDAQ:NAKD) are currently up as much as 30%. And only Bed Bath & Beyond’s (NASDAQ:BBBY) approximately 62% increase and Koss’ (NASDAQ:KOSS) 68% gain come close to AMC’s meteoric rise, which surged much of Wednesday.
What AMC Is Doing Well Is What Matters
At the moment, few people seem to care about what isn’t working in AMC’s favor.
All that matters is everything the company is doing right, right now.
Things like catering quickly and efficiently to retail investors are proving to be huge boons to both AMC’s price and social media’s affection towards the entertainment company.
Just look at , where he has been tweeting frequently with thoughtful responses to the community’s concerns and also voicing his own enthusiasm for the company’s future. People on social media love AMC and its CEO.
Where GameStop (NYSE:GME) sat back and watched its stock take off, AMC proactively engages with its community. This allows them to capitalize on hype and hopefully convert short-term sentiment into long-term value.
AMC CEO Adam Aron’s most recent strategic move was to launch a new that seeks to reward retail investors for believing in the company.
Moviegoers are now able to , tick a box saying that they are an investor, and exclusive promotions will be sent to them via email in the future.
In addition to receiving free popcorn just for signing up as an investor, AMC’s retail investor crowd can also expect to see free or discounted concessions and tickets, access to exclusive screenings and information straight from the CEO regarding the company and its operations.
Free popcorn has proven to be good news for AMC stock.
But there’s more to this announcement.
Soon, retail investors will start trickling into theatres to redeem their free popcorn and take advantage of other rewards. At that point, we could very well see another social media-led price boost.
The Bottom Line on AMC Stock
News of this clearly-very-appealing promotion comes just one day after a press release detailing the $230.5 million that AMC raised by selling equity to Mudrick Capital (NASDAQ:MUDS).
AMC plans to use these funds to create more value for the company by acquiring leases for new theatres and improving its existing locations — “With our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again.”
Meme stocks may not stay with us as long as other, more reasonable stocks, but we predict this “us versus them” retail investor mentality won’t die out anytime soon.
And if meme stocks stand any chance of surviving in the distant future, after their time in the public eye has waned, they should handle the situation like AMC — with genuine community engagement and value-growing, forward-looking investments.
If you’re looking to invest in more than just memes, we also offer a premium research advisory service, Innovation Investor, that might better suit your investment style.
Rather than invest in volatile, social stocks, our team meticulously investigates the most disruptive emerging trends that could see 2X, 5X or even 10X gains over longer periods of time. The companies we believe the most in aren’t being saved by retail investors, they’re thriving on their own. They’re innovating and controlling the landscape they operate on rather than playing by the rules.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative next-generation technology stocks, become a subscriber of Innovation Investor today.