AMC’s Stock Surges as Roaring Kitty Returns

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Shares of AMC Entertainment Holdings Inc. (AMC) is up 47.77% amid a meme-stock rally on Monday that also sent shares of GameStop Corp. skyrocketing 81.6%. The rally appears to be driven by the return of Keith Gill, also known as Roaring Kitty, to social media. On Sunday, Gill, whose analysis of GameStop created a national phenomenon in 2021, made his first post on X, formerly Twitter, in three years. The post on X indicated that he is paying attention.

AMC stock jumped 47% and hit as high as 4.33, volume exploding 23 times its 50-day moving average. The impetus for this surge was fellow 2021 meme stock Gamestop (GME), which soared on news that Roaring Kitty, who gained fame on the WallStreetBets message board of Reddit, is back to actively posting. AMC stock struggled in January this year, finishing 1.5% lower to a record low of 4.05 and dropping nearly 34% for the month. In contrast, the S&P 500 added 1.6% in January.

In April, shares have jumped more than 1 point, up 37%, and propped back above 4. The daily chart shows a bullish new development after a Falling wedge pattern: AMC surged above the 10-week moving average. AMC's stock market value has rebounded back above $1 billion, according to MarketSurge, before sinking again. More than a year ago on Feb. 28, 2023, the stock was valued at $14.9 billion.

This story examines fundamental, technical, and fund ownership factors to determine if the Leawood, Kan., company with 900 theaters and 10,000 screens scores a good probability of making money for stock traders.

Starting the year 2021 at 2 a share, AMC stock skyrocketed 36-fold to an all-time high of 72.62 on June 2, that same year. Then came 2022, a brutal year for meme stocks. AMC stock started that year at 27.20 (before the reverse split) and ended at 4.07, a miserable loss of 85%.

Move forward to the summer of 2023, particularly in July that year. AMC shareholders had good reason to look forward to another rebound, but a key change in the capitalization of the stock led to a massive decline during August and September. For long-term holders, the news helped lead to a disheartening finish in 2023 in which AMC stock plunged 83% to 6.12.

AMC posted a fourth-quarter net loss of 54 cents a share on Feb. 28, while sales grew 11% to $1.1 billion, marking the fourth quarter in a row of double-digit increases. Adjusted EBITDA soared 193% to $42.5 million, and the sequel to 2021's "Dune: Part One" action drama and sci-fi epic pocketed $32.2 million in ticket sales through the Friday night leading into its opening weekend. Analysts on consensus see the company posting a net loss of $1.59 a share this year and 67 cents in 2025. AMC posted a full-year adjusted net loss of $6.95 a share in 2022 and lost $1.59 in 2023.