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28 Sep, Wednesday
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Bull Trader USA

MemeMoney: AMC’s apes went bananas for the movie chain’s stock Monday, despite a rough start to Christmas week for Wall Street—here’s why.

“Look out! Here comes the Spider-Man.”

Indeed, fans of Marvel’s webslinging superhero might be forgiven for humming the theme song from the 1967 animated series because it certainly seems that Spider-Man is doing whatever a spider can…at least when it comes to hefting AMC Entertainment AMC, +1.99%’s shares.

The movie theater chain managed to sidestep a brutal day for the broader stock market and pop 2% on Monday after “Spider-Man: No Way Home” broke multiple box office records and CEO Adam Aron took to Twitter TWTR, -0.21% to herald those numbers and thumb his nose at those betting that the cinema chain’s stock will fail to leverage a surge of its shares that began in earnest at the start of 2021.

Peter Parker and his multiverse of pals [No spoilers] netted $260 million over the weekend, giving it the second-biggest domestic opening of all time and mollifying some investor fears that the widening path of the omicron variant would hurt the film’s box office numbers and that of the broader movie business.

For his part, Aron wasn’t shy about celebrating, using his fingers to brag before the opening bell on Monday that AMC welcomed 7 million customers to see Spider-Man over the weekend:

Aron also showed he has no problem throwing shade at his perceived haters on Twitter, touting the webslinger’s big debut with a diss track:

But when those numbers were further boosted as the estimated figures solidified, Aron crowed even lounder:

“Whoa Nellie” indeed was the vibe amongst retail traders on social media, who combined theories around the strong box office, an improving short squeeze opportunity, as a bull case for AMC over the shortened holiday trading week. The stock market is closed on Friday in observance of Christmas.

Meanwhile, Aron’s public bravado —the CEO also hopped on CNBC Monday morning to offer Jim Cramer a chance to eat crow—also were credited with lifting AMC’s stock in an otherwise woeful session.

Financial data platform Ortex issued a short-squeeze alert on AMC early Monday, indicating that short activity around the stock was at its highest in a month, just as the stocks price has gone up more than 40% in the last five trading days.

AMC Apes, the staunchest supporters of the meme stock that has mostly risen on the back of social-media fervor over fundamentals, also continued to share a theory that millions of AMC shares are being bet against, or shorted, in dark pools. Those bullish investors maintained that holding AMC’s price above $26 a share would force those naked shorters into public exchanges, as the thinking goes.

That theory reverberated to create wider reads of Monday’s 433-point drop on the Dow Jones Industrial Average DJIA, -1.23%.

“I’ve been here before they dropped entire stock market everything just to stop AMC from running that’s why everything is down,” read on comment on subreddit r/AMCStock.

In the end though, much of the increased chatter around AMC on Monday—retail analytics company HypeEquity indicated pointed to a more than 500% increase in mentions of the company’s stock on Reddit, which centered around its very vocal CEO Aron.

“God damn what a slam dunk. Clears up every inch of AA fud,” declared one AMC bull on r/AMCStock, using a popular acronym, fear uncertainty doubt, in referring to recent criticism of Aron for cashing in on many of his insider AMC shares. “If you still have doubts then I question your integrity as a person.”

Elsewhere in the world of meme stocks

GameStop GME, +0.96% managed to eke out a 1% rise on Monday, and Robinhood HOOD, -5.60% tumbled another 5.6%, indicating that it needs an Avenger or a CEO with saltier tweets to get it back in the meme stock game.

Don’t forget to check out Dr. Trimbath talking DRS and 2022 on MemeMarkets

You know she’s worth it…

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