- Shares in AMC spike 15% in pre-market trading on Thursday.
- Twitter trend spike in AMC shares as traders look for news.
- AMC Twitter rumours of a possible takeover, mainstream news services dismiss as old news.
AMC Stock Forecast
Here we go again another volatile day in AMC shares beckons as the Twittersphere goes for it! Shares in AMC have spiked up to $6.16, a gain of over 11%. The reason is unclear but an article from Forbes France is circulating on Twitter speculating on a possible Amazon takeover. The article points out it is highly speculative and multiple news sources have dismissed the news but that would appear to be the main factor pushing AMC shares higher.
Is the news true or not? is not known and as with all speculative stories, traders should guard risk carefully. Trends are powerful and can result in profits so just because a stock spikes or a story is circulated, it shouldn’t be dismissed as a trading opportunity. The “trend is your friend” as the old adage goes so ride it and use a trailing stop or some form of risk management.
AMC Stock News
AMC had been one of the Reddit darling stocks of 2021. The cinema chain was an obvious target for short sellers due to the pandemic but the /wallstreetbets community took on the short sellers and won. AMC was able to survive and raise money to ensure its future survival, thanks to the retail-induced share price appreciation. AMC last raised over $900 million in January. “This means that any talk of an imminent bankruptcy for AMC is completely off the table,” CEO Adam Aron said at the time. A victory for the Reddit retail community and for society at large who want to return to leisure activities post the pandemic. So the /wallstreetbets saga may have had positive societal impacts and hopefully resulted in more profits than losses for the new retail rebels!
Currently, in Congress, Senator Warren has questioned Citadel’s relationship with Robinhood and written to the financial regulator about protecting retail investors.
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