AMC Networks' stock might have gotten a boost thanks to confused Reddit users
AMC Networks is notably different than AMC Theatres. But there might be some confusion about that on Wall Street today.
Video game retailer GameStop's stock has been soaring lately thanks to day traders on the Reddit WallStreetBets forum. As The Wall Street Journal explains, "ordinary investors, stuck at home in the pandemic," are "buying things Wall Street has bet against," all while touting "their long-shot wagers with the expression 'YOLO.''
And on Wednesday, AMC Theatres, the theater chain that has been narrowly avoiding bankruptcy over the past year as its industry is hit hard by the pandemic, saw its stock soar. Reddit users, The Verge writes, are "turning their attention" to AMC, "creating memes and spamming AMC emoji in an effort to convince thousands of people to buy AMC stock." The theater chain seemed to be the latest beneficiary of what Bloomberg dubbed the "GameStop effect."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
But if you're inclined to buy AMC Theatres stock, make sure it's AMC Entertainment, not AMC Networks. After all, the latter is actually the company that owns the AMC cable channel, not the AMC theater chain. Yet analysts pointed out that both AMCs were having a good morning, maybe thanks to some confusion about this distinction.
"For all of the retail investors out there saying they are so sophisticated, please explain why so many of them are confusing the stocks of AMC Theatres with AMC Networks," CNBC's Andrew Ross Sorkin wrote.
At the same time, CNBC's Alex Sherman offered an alternate theory, writing, "I actually think it's because [AMC Networks] is one of the most shorted companies — and they're all spiking." Sherman added, "It just so happens that two AMC entertainment companies are thought to have businesses in deep trouble!"
Either way, anyone who was confused has now learned the importance of knowing your AMCs.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published
-
Immigration helped the US economy outpace peers
speed read The U.S. economy grew at an annualized rate of 3.2% last quarter
By Peter Weber, The Week US Published
-
4-day workweek gets boost from UK study
Speed Read Following a six-month trial, the majority of participating British companies are still using the truncated schedule
By Peter Weber, The Week US Published
-
US sues to block Kroger-Albertsons merger
Speed Read The Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants
By Peter Weber, The Week US Published
-
Nvidia sees historic stock rise on AI chips success
Speed Read U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history
By Peter Weber, The Week US Published
-
New York may seize Trump's assets for $450M penalty
Speed Read The former president likely owes $600 million from two civil judgments in New York
By Peter Weber, The Week US Published