AMC stock trading was cut short on Wednesday after the company’s share price rose due to a promise to make free popcorn for investors, in the latest example of the “meme trading” frenzy on Wall Street.
Shares of the group rose 93 percent to $ 61.82 a share on Wednesday, dropping trading twice on the New York Mercantile Exchange. Shares have risen more than 450 percent in the past month.
Other “meme shares”, such as Bed Bath & Beyond and BlackBerry, also made big gains on Wednesday.
According to Bloomberg, companies with a market value of more than $ 500 million, AMC was the most active trading on US stock exchanges on Wednesday, and BlackBerry was the third most traded.
AMC’s new Investor Connect program, which will offer bonuses such as “special show” invitations, highlights how the growing power of individual traders is capturing the professional interest of publicly listed companies. Wall Street investors,
Shares of Meme came into the spotlight when retail trading reached record highs in the first two months of this year, boosting Reddit social media platforms such as r / WallStreetBets.
Retail investors have joined a record number since the onset of the market epidemic, with retail sales doubling from less than 10 percent to 20 percent in 2019-2021, according to Piper Sandler.
AMC is one of the key beneficiaries. Amateur traders now make up the bulk of AMC’s total shareholder group, accounting for about 80 percent of the company. More than 3.2 million new individual investors owned the company by March 2021, AMC said on Wednesday.
Large investors have also stepped up the tide. On Tuesday, AMC said it had sold 8.5 million new shares in a hedge fund, Mudrick Capital Management, for about $ 27 each, a big premium from AMC’s $ 2 share price at the end of last year. Mudrick later sold the shares after rumors of a raise raised them to $ 33.53.
Other listed companies in the United States are also considering how best to work with their growing generation of retailers in the growing market. Shareholder engagement events, such as general meetings, have been moved online, making it easier for day-to-day investors to participate and vote.
General Lumi, the operator of the general meeting, said that he noticed a significant increase in the involvement of retail shareholders, both in attending general meetings and asking questions and voting. This has been reinforced by easy-to-use brokerage platforms such as Robinhood, which notifies shareholders by email of voting deadlines.
“Companies tell us that the demographic picture of the people present at the meetings is different. That’s not the tea bag, “said Rumart Taylor, Lumi’s chief executive. “When you remove the barriers of people who can get there, the demographics of who might be present change և ask questions.”