The Game Stop case – A few months ago the case of Game Stop, the chain of video game stores that ended up in the crosshairs of a speculator fund, caused a sensation. This fund aimed at the fall of the shares. Some traders, through the social network Reddit, have organized themselves to buy Game Stop stocks by increasing the value of the company and consequently bleeding the fund. Several users have earned significant amounts from that operation which brought Game Stop’s value up to $ 25 billion. Nothing compared to over 33 billion Amc.
Another “stock meme” – When it is not the company’s performance but rather the hype on social media and online forums, as happened with Reddit, that pushes a stock on the stock market: that is one of the so-called “meme stocks”, often overrated, with drastic increases of prices in a short amount of time. Other examples are BlackBerry, with thousands of mentions running up 23%, Sundial Growers shares translate into a 10.5% rise and 6% for Palantir Technologies.
The promises of free popcorn – Triggering the sprint of AMC is the announcement of the AMC Investor Connect program, a plan to reward loyal individual investors with special benefits, from ad hoc screenings to free popcorn in the room. AMC thus caters to those DIY investors who have supported the stock in spite of everything and everyone, even short selling. The rally is reminiscent of the Reddit army that pushed GameStop. Retail investors have entered the equity market in record numbers since the start of the pandemic, with retail trading volumes doubling between 2019 and 2020. AMC was one of the beneficiaries, with amateur investors controlling 80% of the company despite its certainly not rosy prospects.
But AMC’s prospects are not rosy – analysts predict that the cinema chain could lose nearly 100 million in 12 months. However, these estimates have not affected the interest of small investors, which have now become an important phenomenon on the market. Several listed companies are questioning how to position themselves and interact with the new generation of retail investors and their strength. but also with their involvement in companies, which has become greater thanks to the possibility of following the events dedicated to shareholders in a virtual way and therefore being able to weigh, with one’s vote, in the choices.