Can AMC Survive Without the Reddit Crowd?
AMC Entertainment Holdings'(NYSE: AMC) stock is catching a ride to the moon on the back of a group of investors that discuss stocks on Reddit. The stock is up an incredible 2,800% year to date.
While the company's fundamental prospects are improving as more folks are getting vaccinated, the meteoric rise of AMC stock appears detached from fundamentals. Management addressed the issue on June 3, saying, "We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last."
Instead of focusing on company fundamentals, the group from Reddit is focused on forcing a short squeeze, where heavy buying activity in a stock counters those who are betting against (or shorting) the stock. Intentionally or otherwise, this tug of war achieved by Reddit investors has fundamentally helped AMC.
Source Fool.com
