Pushing toward 200% in total gains this week, AMC Entertainment Holdings (AMC 0.25%) shares are having quite a month. Part of the move seems to be linked to, you guessed it, Reddit and WallStreetBets. The stock has reportedly overtaken GameStop as the most-discussed on the website. These stocks were at the epicenter of the wild Reddit trades last year that saw Gamestop shares rally 6,000%.
AMC stock was up over 35% on Thursday, and has been swinging between 10% and 30% this morning on high trading volume. AMC Entertainment was pummeled by COVID-19 and the subsequent shutdown. The company's revenue collapsed last year by 77% to $1.24 billion. The 2020 losses amounted to $25.72 per diluted share.
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Most recently, AMC reported first-quarter 2021 results that were much smaller than the year prior. Q1 revenue was $148.3 million versus $941.5 million in Q1 2020. In contrast, AMC has drastically improved its operating losses, and reported first-quarter losses of $1.42 per diluted share, compared to losses of $20.88 per diluted share in the first quarter of 2020. Another area of note is the significant increase in shares outstanding. There are over 400 million shares outstanding right now, compared to around 104 million 12 months ago.
Outside of Reddit momentum, the financials are a clear indicator that the trading is related to future sentiment that rising numbers of COVID-19 vaccinations and economic reopening will drive consumers back to movie theaters.
