During its Q2 earnings call on Thursday, AMC (NYSE: AMC) CEO Adam Aron thanked millions of Redditors and Robinhood traders for increasing the company’s stock during the start of 2021. The online investment community took the speech as a sign that Aron was on their side against Wall Street.
“[Aron] is totally onboard, convince me otherwise,” wrote user Nruggia. “This dude is so smooth with the subliminals. Gotta love it lol,” added yazooguy1.
Aron did in fact make it clear that he agrees with the online traders, which have bought stocks and challenged traditional investors. The movement boosted the company’s stock from USD2 to USD20 per share in only a couple of weeks.
“These individual investors likely own a majority of our shares, they own AMC. We work for them. I work for them,” Aron said on the call of the “more than 3 million” individual investors that own AMC shares. “By definition, their interests and passions are important to AMC, their ambitions and passions are important to me.”
Despite the new investors, Wall Street analysts remain bearish on the company’s performance.
“We expect continued volatility in shares of AMC, as well as trading momentum unrelated to AMC’s fundamentals,” Wedbush analyst Alicia Reese wrote in a research note a week before AMC posted its earnings. “As such, we do not recommend buying shares of AMC here.”
Analysts revealed that the frenzy showcased the lack of knowledge on how financial markets function.