Tag Archives: AMC Entertainment Holdings Inc

Bed Bath & Beyond jumps 50% to lead ‘nonsense’ rally in meme stocks; AMC gains 15%

January 11, 2023 Admin Leave a comment

A “Store Closing” banner on a Bed Bath & Beyond store in Farmingdale, New York, on Friday, Jan. 6, 2023.

Johnny Milano | Bloomberg | Getty Images

A group of highly speculative stocks rallied double digits on Wednesday as retail investors pushed meme names up again in the new year following a dismal 2022.

Bed Bath & Beyond rallied a whopping 50% to trigger the trend in morning trading Wednesday. Shares of GameStop, the original star of 2021’s meme stock mania, climbed more than 10%. AMC Entertainment soared 18%.

Meme stocks rallying one more time

Stock	Short interest % float	Wed. Gain	% off 52W high
Bed Bath & Beyond (BBBY)	48.9%	60%	-89%
AMC (AMC)	21%	15%	-78%
GameStop (GME)	21%	8%	-62%

Source: FactSet

The rally in Bed Bath & Beyond was initially triggered by news that it would lay off more employees in an attempt to reduce costs and stay in business.

The home goods retailer told employees that it is eliminating the chief transformation officer role, which is held by Anu Gupta, on the same day it reported disappointing fiscal third-quarter results. Bed Bath & Beyond is approaching a potential bankruptcy, as its sales decline and losses grow.

“We don’t love the strength in nonsense stocks like AMC, CVNA, GME, BBBY, PRTY, etc.,” said Adam Crisafulli, founder of Vital Knowledge. “This just means people are blindly chasing.”

During early 2021, a band of retail traders joined forces on social media to bid up a slew of heavily shorted stocks, creating massive short squeezes that inflicted high pain on short sellers. These meme stocks experienced big pullbacks last year when risk sentiment shifted amid aggressive rate hikes. GameStop fell 50% in 2022, while AMC tumbled 75% and Bed Bath & Beyond plunged 82%.

While the short interest in these names has come down from its peak after the jaw-dropping episode, it still remains much higher than average.

About 48% of Bed Bath & Beyond’s float shares are sold short, compared with an average of 5% short interest in a typical U.S. stock, according to S3 Partners. For GameStop, the short interest stands at 21%, down from more than 100% at the height of the meme stock mania in 2021, according to FactSet. AMC has also 21% of shares sold short.

A short squeeze happens when a stock jumps sharply higher, it forces short sellers to buy back shares in order to limit their losses. The short covering tends to fuel the stock’s rally further.

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Tesla, AMC, Southwest and others

December 28, 2022 Admin Leave a comment

Check out the companies making headlines before the bell:

Tesla (TSLA) – Tesla gained 1.6% in the premarket in a volatile session, following a seven-day losing streak and declines in ten of the past eleven sessions. Baird reduced its price target on Tesla to $252 per share from $316, but continues to rate the stock outperform.

AMC Entertainment (AMC) – AMC Entertainment rose 1.2% in premarket trading after CEO Adam Aron asked the movie theater chain’s board to freeze his salary. He also urged other top AMC executives to do the same.

Southwest Airlines (LUV) – Southwest Airlines fell 1.3% in premarket action as it continues to cancel flights in its struggle to return to a normal schedule. Southwest has canceled thousands of flights over the past week, following a severe winter storm, and is limiting bookings over the next few days.

Nvidia (NVDA), Micron Technology (MU) – These and other semiconductor stocks remain on watch as investors focus on an oversupply of chips. That is in sharp contrast to the global shortage during the pandemic, when demand was surging.

Apple (AAPL) – Apple is marginally higher in the premarket following its Tuesday close, which was the lowest since June 2021. Apple fell during the past three days and in eight of the past nine trading sessions.

Lyft (LYFT) – The ride-hailing company’s stock remains on watch after closing lower than $10 per share for the first time since going public in 2019. It rebounded by 1.1% in premarket trading.

Generac (GNRC) – The power equipment maker’s stock was rated buy in new coverage at Janney Montgomery Scott with a price target of $160, implying a 76% upside from current levels. Generac is the worst performer in the S&P 500 for 2022 with a 74.1% decline.

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Apple, Amazon, Microsoft and Google will fuel the next rally

December 12, 2022 Admin Leave a comment

To build a fire — but not destroy the market by doing so. That’s the goal right now. It’s not as easy as in the famous Jack London short story (“Too Build a Fire”) where in the end the survivors profit rather than freeze to death in their sleep. In the early part of this decade, we saw the rise of Robinhood (HOOD) and the distribution of investments from the serious to the ephemeral. These days, Robinhood has the appearance of one gigantic bonfire of young peoples’ money. The gamification concept was real and the exodus of investors was noisy — culminating with the ridiculous self-immolation of GameStop (GME), AMC Entertainment (AMC) and the meme stocks. Those who fought this trend abandoned Twitter, hired bodyguards and tried to hide from the angry mob that was attempting to will stocks higher by savaging the sellers. No tinder from these clowns. Then there was the much larger-than-expected romp to crypto. The people who bought it somehow ensconced their brains into something they didn’t understand. As a result, they overran their brains and outsourced them to others who claimed to know more than they did. You had to oppose a phalanx of vociferous, self-promoting scoundrels and their fintech allies in government and venture capital — all of whom should feel shame, but shame eludes them. They will not accept their intellectual disgrace, and instead continue to argue that it was all about blockchain and DeFi (decentralized finance). They want to explain to you why they got it right and you got it wrong, even as they lost everything and you were safe keeping your cash at JPMorgan. I wish I had a hubris scale, something like a gigantic thermometer that could measure these arrogant promoters and give them the hook when they contend that they are smarter than you for believing in something with a best-use case as untraceable ransom money. But this era is running out. It’s going to be done with a fight, of course, as we see its representatives defend themselves with specious arguments that sound so self-serving and outright phony that even neutral minds are repelled and rebelling. The money furnace that was Robinhood burns blandly versus the napalm of crypto. The interests that defended crypto can’t go quietly because they will empty the coffers of their crypto banks and cause waves of bankruptcies; the $34 billion that we know of that was destroyed by Sam Bankman-Fried — the disgraced former boss of failed crypto exchange FTX — pretty much propped up everything. We keep getting stung by the alleged due diligence done by so many who should have known better, with only a couple of institutions writing their investments to nothing, along with their explanations, or lack thereof. Here’s the problem: If it all goes away — crypto and all the institutions supporting it — the money that’s left won’t help push equity prices higher. It was once a magnet to a couple trillion dollars. Now I wonder if there’s $400 billion to the entire edifice. The whole thing reminds me of a line from the film “Beau Geste,” when two of the main characters are under attack: “You’ll do your duty better dead than you ever did alive.” The biggest guns are most likely liquidating as they talk, the duplicitous cads. They will tell us that we are fools not to believe in blockchain as if somehow that is dispositive to something other than lies and blunders. My point is this: The crypto con and the Robinhood dollar conflagration can’t produce enough money to buoy stocks. There’s not enough left in these embers to do anything but marvel at how much there used to be and how little bankruptcy produces. No matter how many hearings, we will never know the full culpability behind those in Congress and those in the Securities and Exchange Commission who opposed Chair Gary Gensler. He came on CNBC specifically to warn us of made-up coins and institutions that give you too high a return compared to cash in a real bank. Self-serving cryptocurrency players have been critical of the SEC. They want to school Gensler and let him know he can only go so far before running into all the well-endowed entities and their secret paid supporters. The horror! The horror! So where else will the money come from? Unlike the chimerical trillions that vanished into thin crypto air, the fuel will come from four stocks that have a combined total of $6 trillion to donate: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN). There is simply too much money in these names to take us higher, or at least how high we can go after the Federal Reserve’s next meeting this week. But I think some of that investor money will be transferred into the stocks of companies that have the most voracious buybacks. Those are the companies without enough stock available to handle all the money that will flood in. Money in those four stocks will be pulled out, kicking and screaming, until the valuations become earthly — better than Meta Platforms (META) and more like the S & P as they are revealed to be mortal. Not until then can the rally start in earnest. Can these valuations be played out? It’s happening as you read this. Of course, there’s one other enemy to the advance and it’s a powerful one: The 4.5% yield from 2-year Treasuries is outrageously bountiful in a market where anything north of 4% in equities is likely tied to plummeting oil. However, we cling to the oils, betting that they can maintain their well above market prices when Russia can’t produce its endless reserves and China goes voracious upon reopening. I think we will win. We will hold Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon , even as we’ve trimmed them higher. Their spiral down to earth, however, will be painful. If we hadn’t sold some, it would be getting late in the game. But I suspect there’s more pain to come. Why take it? Because these companies still have value, even though it won’t surface until the selling’s done and we don’t know when that will occur. It’s too dangerous now to depart, although Apple could see $120 and Microsoft a 10-point decline. Amazon and Alphabet control their own destinies through headcount reductions. The good news? The selling could end after the Fed meeting. The bad news: If it does, there will not be enough rocket fuel. The big four need to shed a trillion minimum to power things higher. I think it will happen in time. Which would mean a brutal week until the transfer begins to be made. Hold on to what you have, but get ready to be lifted by the stocks with the strongest buybacks. That’s where the accumulation will matter the most. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Satya Nadella, chief executive officer of Microsoft Corp., during the company’s Ignite Spotlight event in Seoul, South Korea, on Tuesday, Nov. 15, 2022. Nadella gave a keynote speech at an event hosted by the company’s Korean unit.

SeongJoon Cho | Bloomberg | Getty Images

To build a fire — but not destroy the market by doing so.

That’s the goal right now. It’s not as easy as in the famous Jack London short story (“Too Build a Fire”) where in the end the survivors profit rather than freeze to death in their sleep.

In the early part of this decade, we saw the rise of Robinhood (HOOD) and the distribution of investments from the serious to the ephemeral. These days, Robinhood has the appearance of one gigantic bonfire of young peoples’ money. The gamification concept was real and the exodus of investors was noisy — culminating with the ridiculous self-immolation of GameStop (GME), AMC Entertainment (AMC) and the meme stocks. Those who fought this trend abandoned Twitter, hired bodyguards and tried to hide from the angry mob that was attempting to will stocks higher by savaging the sellers. No tinder from these clowns.

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Business

Stock futures flat as Wall Street awaits U.S. midterm elections

November 8, 2022 Admin Leave a comment

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 7, 2022.

Brendan Mcdermid | Reuters

Stock futures were flat Monday evening following a winning day for markets as investors looked ahead to U.S. midterm elections on Tuesday.

Futures tied to the Dow Jones Industrial average rose 12 points or 0.04%, after erasing earlier gains. S&P 500 futures and Nasdaq 100 futures were both fractionally lower. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor slumped more than 15% each after reporting disappointing quarterly results.

The moves come after a day when all major indexes notched a second straight positive session. The Dow Jones Industrial Average closed higher by 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96%, and the Nasdaq Composite rose 0.85%.

Investors are awaiting Tuesday’s midterm election results. They will determine which party controls Congress and steer future policy and spending.

Any market reaction will likely hinge on whether Republicans take back the House of Representatives, the Senate or both.

“The idea that [Republicans are] going to take back the house is pretty much baked into the market,” said Lori Calvasina, RBC Capital Markets on CNBC’s “Fast Money” on Monday. “I’m not saying it won’t be a good thing, that we won’t have a few days of feeling good or that it won’t provide some stability, but I think for a big kicker in the S&P they need to take back the Senate as well.”

Wall Street will also closely watch Thursday’s consumer price index report for the latest data on how much the Federal Reserve’s interest rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another hotter-than-anticipated report could embolden the Fed to raise rates aggressively in December.

Earnings season continues this week. On Tuesday, Lordstown Motors, Lucid Group, Walt Disney and AMC Entertainment all report their latest quarterly results.

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Fund manager names 3 recession-proof stocks and reveals how to rescue portfolio

October 26, 2022 Admin Leave a comment

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GameStop surges more than 20% and is halted in odd trading; AMC shares also pop

May 12, 2022 Admin Leave a comment

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

Brendan McDermid | Reuters

Shares of two meme stocks surged on Thursday, adding an unexpected wrinkle for a stock market that has been dropping in choppy trading for more than a month.

GameStop jumped more than 20% and was halted for volatility multiple times. The stock of theater chain AMC Entertainment popped 18%.

GameStop and AMC turned heads early last year when a band of retail investors coordinated trades on online chatrooms to create massive short squeezes in these stocks widely hated by hedge funds and other players. The meteoric rallies inflicted huge pains for many hedge funds and other short sellers involved in these speculative names.

Since then, the stocks have retreated from their peak prices, and short-sellers have started to build positions once again. According to FactSet, AMC has short interest of 19.5%, while GameStop sits at 21.4%.

Those large bets against the company can sometimes lead to dramatic one-day moves in a stock, as hedge funds move to close out their short positions when a stock rises, thus creating more buying pressure. This process is known as a short squeeze.

Even with Thursday’s big moves, the stocks remain well below their heights from the first half of 2021. GameStop, which rose as high as $483 per share on an intraday basis last January, was trading between $90 and $100 per share on Thursday.

AMC, which hit an intraday of $72.62 last June, was at around $12 per share on Thursday.

Because the market caps of the companies have fallen so much, it is easier for just a few trading shops, or even one large fund, to force a new short squeeze.

In 2021, both AMC and GameStop took advantage of their temporarily elevated share prices to sell additional stock and raise capital. AMC CEO Adam Aron has made a major effort to embrace the retail investors who participated in the rally, answering questions from small-dollar traders on earnings calls and introducing shareholder perks at the physical movie theaters.

AMC has used the cash it raised in part to buy up other theaters around the country. However, the company also bought a stake in a small gold mining company earlier this year that has a shaky financial history.

This is breaking news. Please check back for updates.

— CNBC’s Yun Li contributed to this report

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Charlie Munger says Robinhood is justly ‘unraveling’ for ‘disgusting’ practices

April 30, 2022 Admin Leave a comment

Berkshire Hathaway Vice Chairman Charlie Munger blasted stock trading app Robinhood on Saturday, saying the company is now “unraveling.”

“It’s so easy to overdo a good idea. … Look what happened to Robinhood from its peak to its trough. Wasn’t that pretty obvious that something like that was going to happen?” Munger said at Berkshire Hathaway’s annual shareholder meeting Saturday.

Munger lambasted what he characterized as Robinhood’s “short-term gambling and big commissions and hidden kickbacks and so on.”

Robinhood does not charge users commission and generates a majority of its revenue from “payment for order flow,” the back-end payment brokerages receive for directing clients’ trades to market makers.

“It was disgusting,” Munger said. “Now it’s unraveling. God is getting just.”

Charlie Munger at the Berkshire Hathaway press conference, April 30, 2022.

CNBC

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GameStop, Apple, BlackBerry and more

April 1, 2022 Admin Leave a comment

Check out the companies making headlines before the bell:

GameStop (GME) – GameStop plans to seek shareholder approval to boost the number of shares outstanding in order to enable a stock split. The videogame retailer is proposing an increase to 1 billion shares from 300 million. The stock surged 16.6% in the premarket.

Apple (AAPL) – J.P. Morgan Securities removed the stock from its “Analyst Focus List,” saying a moderation in consumer spending may limit benefits from the iPhone SE launch and the potential for upside in services revenue. However, the firm retained an “overweight” rating on the stock.

BlackBerry (BB) – BlackBerry earned an unexpected profit for its latest quarter, but the communications software company’s revenue fell below analyst forecasts. The revenue miss came as growth in its cybersecurity unit flattened. Shares slid 4.4% in premarket trading.

Wynn Resorts (WYNN) – The resort and casino operator’s stock added 1.6% in the premarket after Citi upgraded it to “buy” from “neutral.” Citi cites increasing clarity over regulations and licenses in Macau as well as an attractive valuation.

Li Auto (LI) – Li Auto rallied 6.6% in premarket trading after the China-based electric vehicle maker reported 31,716 vehicles deliveries in March, more than double the year-ago total.

Nio (NIO) – The China-based electric vehicle company Nio reported deliveries of 9,985 vehicles in March, an increase of 37.6% from a year ago. Nio shares jumped 5.8% in premarket trading.

Hycroft Mining (HYMC) – The small-cap mining company – best known for an investment from movie theater chain AMC Entertainment (AMC) – added 3% in the premarket after reporting a smaller-than-expected quarterly loss. AMC shares rallied 4.6%.

Poshmark (POSH) – The online clothing marketplace operator’s stock slid 2.2% in premarket trading after Stifel cut its rating to “hold” from “buy.” Stifel said the company faces numerous growth challenges despite healthy profit potential and a highly engaged user base.

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Meme stocks GameStop and AMC tumble Tuesday on heavy trading volume

March 29, 2022 Admin Leave a comment

A GameStop location in New York, Dec. 23, 2021.

Scott Mlyn | CNBC

Meme stocks tumbled on Tuesday with huge trading activity in the shares.

GameStop dropped more than 9% with more than 6 million shares traded through 10:15 a.m. ET, already more than its 30-day average full-day volume of 4.6 million.

AMC Entertainment shares lost nearly 4% with 76 million shares traded, already more than its 30-day average of 51 million.

The reason for the moves were not immediately clear, but both stocks are up big this month amid a broader comeback rally on Wall Street so some investors could be using that pop to take profits in the volatile shares.

There were some large block trades of GameStop in early trading on the NYSE. Outside of the open there were two trades of more than 20,000 shares apiece, according to FactSet data.

The NYSE briefly halted both stocks for volatility shortly after the open as the stocks popped then dropped.

The duo just notched a strong week as loyal retail investors kept pushing up the shares. GameStop shares rallied a whopping 67% last week as traders got a vote of confidence when chairman Ryan Cohen bought additional 100,000 shares of the video game retailer.

Meanwhile, AMC saw a 28% gain last week after the movie theater chain revealed its plan to buy a tiny gold miner. However, the move to take a significant stake in the gold miner with a shaky financial history confused many Wall Street strategists.

This is a developing story. Check back for updates.

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Nielsen Holdings, FedEx, LHC Group and more

March 29, 2022 Admin Leave a comment

Take a look at some of the biggest movers in the premarket:

Nielsen Holdings (NLSN) – The TV ratings company’s stock surged 20.9% in the premarket after it agreed to be acquired by a private-equity consortium for $28 per share. The deal is worth $16 billion, including assumed debt.

FedEx (FDX) – FedEx CEO Fred Smith will step down from that role at the company he founded more than 50 years ago. He’ll become executive chairman on June 1 and will be replaced as CEO by President and Chief Operating Officer Raj Subramanian. FedEx shares rose 2% in the premarket.

LHC Group (LHCG) – UnitedHealth (UNH) will buy the home health-care specialist for $5.4 billion in cash, or $170 per share, according to The Wall Street Journal. LHC will become part of UnitedHealth’s Optum health-care services unit. LHC shares jumped 7.5% in premarket action.

Uber Technologies (UBER) – Uber is close to an agreement with a San Francisco taxi company to include taxis in its ride-hailing platform in that city, according to people familiar with the matter who spoke to The New York Times. Uber recently struck a similar agreement in New York City. The stock added 1.9% in premarket action.

Jefferies Financial (JEF) – The asset management firm’s stock rallied 3.7% in the premarket after reporting better-than-expected quarterly profit and revenue. Jefferies earned $1.23 per share, well above the 89 cents a share consensus estimate, even as profit fell from a year earlier amid what the company called a “challenging” trading environment.

GameStop (GME) – GameStop remains on watch as the videogame retailer’s stock rides a 10-session winning streak that has seen it gain 143%. Another “meme stock” on a roll is movie theater operator AMC Entertainment (AMC), which surged 45% Monday, its best day since last June. GameStop fell 3.5% in premarket trading, while AMC slid 4.5%.

Stellantis (STLA) – The automaker is laying off an undisclosed number of workers at its Illinois Jeep plant in an effort to “operate the plant in a more sustainable manner.” The plant saw several layoffs last year as well as it tried to deal with the impact of the global semiconductor shortage. Stellantis shares jumped 4.5% in premarket trading.

Southwest Gas (SWX) – The energy producer will sell $400 million in shares at $74 per share to help repay debt used in its $2 billion acquisition of Questar Pipelines in December. That deal had been opposed by investor Carl Icahn, whose offer to buy Southwest at $82.50 per share was rejected by the company on Monday. Southwest fell 3.4% in the premarket.

Dave & Buster’s (PLAY) – The restaurant chain’s stock slumped 5.9% in the premarket after a top and bottom-line miss for its latest quarter. Dave & Buster’s fell 8 cents a share shy of estimates, with quarterly earnings of 52 cents per share. Dave & Buster’s said its results were strong in light of ongoing Covid-19 headwinds.

Pinterest (PINS) – Shares of the image-sharing site operator slid 2.7% in premarket trading after Morgan Stanley downgraded it to “equal-weight” from “overweight.” Morgan Stanley points to challenging user trends, including a greater proportion of time spent on activities with lower monetization potential.

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Tag Archives: AMC Entertainment Holdings Inc

Bed Bath & Beyond jumps 50% to lead ‘nonsense’ rally in meme stocks; AMC gains 15%

Meme stocks rallying one more time

Tesla, AMC, Southwest and others

Apple, Amazon, Microsoft and Google will fuel the next rally

Stock futures flat as Wall Street awaits U.S. midterm elections

Fund manager names 3 recession-proof stocks and reveals how to rescue portfolio

GameStop surges more than 20% and is halted in odd trading; AMC shares also pop

Charlie Munger says Robinhood is justly ‘unraveling’ for ‘disgusting’ practices

GameStop, Apple, BlackBerry and more

Meme stocks GameStop and AMC tumble Tuesday on heavy trading volume

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