The popular forum WallStreetBets bet on GameStop, and investors went all in.
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This story originally appeared on Market Beat
Fingers have been pointed at users of the popular Reddit forum WallStreetBets for driving the hype around what they’re calling the latest meme stock. Shares of GameStop (NYSE: GME) are up a phenomenal 400% thanks to a Reddit fuelled short squeeze that has been getting plenty of headlines. Eager to get in early on the next meme stock, risk hungry investors have been hunting for names that have been beaten down and have high short interest percentages. Though not on the same level of Gamestop’s 150% short interest, AMC’s 25% obviously hasn’t gone amiss.
Aside from all this new retail trader attention, which is doing shares no harm at all, there are some fundamental and technical facts in play that help the bull case. Last week it was announced that AMC had raised $100 million through new secured debt which is a significant addition to its war chest and will boost its liquidity. With theaters closed for much of last year, it was sorely needed and comes on the back of reports from earlier this month that AMC’s UK unit, Odeon, has entered talks to raise as much as $400 million. Towards the end of last month, the company raised $150 million from a 50 million share stock offering.