AMC Stock Price Increases Over 120% Pre-Market: Why It Happened

By Amit Chowdhry ● Jan 27, 2021
  • The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) has increased by over 120% pre-market. This is why it happened.

The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) has increased by over 120% pre-market. There were a few triggers that have been driving up the company’s stock price this week.

On Monday, AMC Entertainment saw a stock price increase after the company raised $917 million in financing. And this would prevent the company from having to file for bankruptcy and would fund operations throughout this year. 

But another major reason why the stock price increased today is due to the encouragement of buying up shares on social media. On Reddit, Facebook, and Twitter, a group of people launched AMC buying campaigns in order to increase the price of shares along with call options — gives buyers the right to buy the stock at a set price until a certain date. And short sellers — investors who borrow stock with a bet that the price will fall — have been buying the shares back soon in order to reduce more losses. Plus institutional investors are also buying shares to hedge against call options being bought.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.