Last year, COVID forced AMC to raise capital to stay afloat after tick sales crashed by more 80%. After several false starts due to COVID-19 cases increasing last Summer throughout the U.S., AMC theaters opened up again on Aug. 2oth. AMC promoted the reopening as "Movies in 2020 at 1920 Prices." But reality quickly settled in as the movie traffic failed to materialize.
That’s when the company said its existing cash resources would be "largely depleted" by the end of this year or early next year because of the "reduced movie slate for the fourth quarter," as well as "the absence of significant increases in attendance from current levels."
The company says they either need to sell more tickets or find new ways to borrow money.
According to a report in the Daily Mail in early 2020, Amazon was considering buying the movie theater chain. Amazon has long been active in video streaming and also has a strong business in connected TV devices with products like Amazon Fire TV and Fire TV Stick.
The dynamics surrounding AMC was one of the reasons why its stock price was heavily shorted. I was actually short the stock at one point.
However, during the Reddit frenzy, AMC Entertainment Holdings raised over $300 million by selling shares at an avg. price of $4.81. However, had they waited a couple of hours later as shares approached $20, they would have raised $1.26 billion instead. The money they raised just might have gotten to the point where they can get back on their feet as their movie theaters start to reopen.
Video Source: https://www.youtube.com/c/CNBCtelevision/videos
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Amazing. There is power in numbers.
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Reddit crew had a taste of victory, now there is no stopping them.
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I think they were way closer than they realised to really causing major shockwaves. Interesting times i love it. Next pandemic will be online so be prepared. Back your shit up.
So true...the great war isn't physical, but digital.
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It's somewhat strange that a small group on Reddit can have such an effect.
I hope Hive and Leo will have a similar impact on the Crypto world in the future.
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It's also the Smart Money helping out these trades too.
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Timing is everything when it comes to trading. $4 a share to $20 a share, almost could have gotten their debt all sold if they timed it right, crazy to think its even possible.
Yeah, sometimes it takes luck and being in the right place as well.
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That was really saving for AMC, imagine not having the opportunity to raise money if that Reddit frenzy didn't happen. Covid-19 really did it's numbers on AMC I just hope they sustain these monies they have raised because the numbers in theatre would never be the same
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It's been a battle for many companies...maybe the Reddit crew is the real Robinhood.
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Exactly, normally without the reddit buzz all these generated money will be unreal.
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I still own my $AMC stock , waiting to see how it all pans out
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Should be a decent open economy trade.
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Is it also the same frenzy as the Gamestock. Becasue i think its Gamestock and Blackberry they are trying to make a short squeeze
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Yes, that was their plan @alt-runner.
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I think the price will not stay forever on that level and covid is not over. The game will have a second-round IMO :)
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