2 June 2021: AMC soars 95% in a day
On June 2, 2021 AMC Entertainment stock jumped about 95%, reaching an all-time high, as Reddit-fueled retail traders piled in. The movie theater chain had just launched a program offering shareholders perks including free popcorn. AMC wisely used the frenzy to sell new shares and raise cash. The excitement did not last, and AMC shares later collapsed far below their meme-stock highs.
The lesson: When a stock soars on hype, the company selling shares into the rally is the smart money.
What it meant for investors
$1,000 in AMC Theatres at the start of 2020 → $429 today, vs $2,092 in the S&P 500.
We start the clock at the start of 2020, the latest year on the wheel. That is a loss of $571, while a plain index fund over the same years made $1,092.
What AMC Theatres teaches: Survival financed by issuing shares can save a company while ruining its shareholders, because dilution transfers value from existing owners to new money.
| Bought in | Price then | Worth today | S&P 500 would be |
|---|---|---|---|
| 2015 | $25.00 | $120 | $3,301 |
| 2018 | $15.00 | $200 | $2,519 |
| 2020 | $7.00 | $429 | $2,092 |
green = beat the S&P 500 · red = lost money
What if you bought AMC Theatres? Every starting year and the full story →
Could you have called it at the time? The wheel picks the year, you pick the position, ten seconds a pick.
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