Will shares of AMC Entertainment Holdings (AMC) continue to rise or fall after a large increase? – Own Snap

Looking at the 6 month chart, you can see the stock of AMC Entertainment (AMC) shot on May 21, 2021. The price at the time was $ 12.08 and has jumped sharply to the value of 62.55. but still fell to 49.34 (June 9, 2021).

AMC Entertainment was one of the biggest surprises of the year. Meme stock has grown by more than 2,300% this year, not because of the company’s performance, but because millions of investors on Reddit and other social media platforms have expressed interest in it. action and banded together to jack up the price with short bets.

These huge profits have come despite the massive dilution of AMC shareholders over the past year in order to stay afloat during the pandemic. As of June 3, there were 500 million shares outstanding, down from around 100 million a year earlier. Normally there are concerns about dilution in equities among investors, but in the internet equity world, new offerings have had the opposite impact. At this point, selling more shares seems like a straightforward process, as AMC’s large stock price gain has effectively provided the company with free money. While the recovery is far from assured, the way forward is at least clear.

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