Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

AMC soars as CEO celebrates 'Spider-Man'; GameStop also rallies

Published 12/17/2021, 03:35 PM
Updated 12/17/2021, 03:43 PM
© Reuters. FILE PHOTO: An AMC theatre is pictured in Times Square in the Manhattan borough of New York City, New York, U.S., June 2, 2021.  REUTERS/Carlo Allegri/File Photo
GME
-
IBKR
-
AMC
-

(Reuters) - Shares of AMC Entertainment (NYSE:AMC) and GameStop Corp (NYSE:GME) roared higher on Friday, as investors pounced on the beaten-down meme stocks after a weeks-long decline in their prices.

The shares of movie theater operator AMC were last up 23.1% at $30.09 and on track for their biggest one-day percentage gain since July.

Some market participants tied the jump to big preview numbers for the "Spider-Man: No Way Home" movie ahead of what is expected to be a massive weekend at cinemas.

AMC's chief executive, Adam Aron, earlier on Friday posted a tweet celebrating the movie's big box office numbers.

Shares of GameStop, meanwhile, were up 9.0% at $157.58.

About 30% of AMC's open options were set to expire at the end of Friday's session, leading to a surge in trading volume as traders placed wagers on where the stock would end the day.

AMC saw about 1 million contracts traded by 1300 EST (1800 GMT), or three times expected volume. Options volume was projected to hit 1.6 million contracts for the day, making it the busiest day for AMC options in about four months, according to Trade Alert data.

Trading sentiment leaned toward bullish bets, with about 60% of the volume in contracts set to expire by the end of the session, according to Trade Alert.

"It’s a classic meme stock rally. There’s some enthusiasm about 'Spider-Man' pushing the stock higher," said Steve Sosnick, chief strategist at Interactive Brokers (NASDAQ:IBKR). "That today is an expiration certainly helps."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Both stocks soared earlier this year, fueled in part by individual traders' coordinating in online chatrooms. AMC is up about 1,300% year-to-date while GameStop has gained about 740%.

AMC shares had fallen as much as 54.7% from their most recent intraday peak of $45.95 on Nov. 8 to the most recent low of $20.80 on Dec. 14.

GameStop shares fell 49% from their recent intraday peak of $255.69 to the most recent low of $129.50 reached on Dec. 14.

Latest comments

Gee, I thought Meme stonks were dead...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.