Shares of AMC Entertainment Holdings Inc. (NYSE: AMC) are up over 650% since early January going from USD 1.98 to as high as USD 14.46 today. As investors from Reddit’s Wallstreetbets community sent shares of Gamestop (NYSE: GME) to the moon by initiating a short squeeze, other companies with massive short interest like AMC and Blackberry Ltd (NYSE: BB) were also targeted. At one point AMC had a short interest of almost 79% of its total share float. AMC and Gamestop have generally moved in tandem over the past 2 months.
As the COVID-19 pandemic took its toll on the economy, AMC was forced to shut down most of its theaters. As a result the Company had its most challenging year to date, as last week AMC reported a loss of a whopping USD 4.6 Billion in pandemic losses. “This past year has presented AMC with the most challenging market conditions in the 100-year history of the company”, said AMC CEO Adam Aron. As COVID-19 vaccines are distributed and restrictions are slowly lifted, there has been a newfound hope for AMC. Recently the company announced that 2 of its 23 locations in Los Angeles would reopen today , and the remaining 21 locations will reopen by March 19th. Also over this past year AMC liquidated over USD 1 Billion in assets.
Despite reporting a massive loss, CEO Aron remained optimistic on the Company’s future and stated “Taking these facts together, we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic.” The positive news combined with a recent short squeeze have elevated shares of AMC to a monthly high.