Look, if the internet learns a new trick – like in January with GameStop – it’s a pretty safe bet that people will play the trick again. So AMC is now through the roof: It hit $72.62, a 91 percent increase from opening and an all-time high. That’s because AMC has embraced the trolls, and now the stock price is going brrr.
AMC announced today that it was creating AMC Investor Connect, “an innovative, proactive communications initiative that will bring AMC in direct communication with its extraordinary base of enthusiastic and passionate individual shareholders to keep them informed of important company information and offer them special offers to do. This represents “a groundbreaking new approach” to communicating with retail investors, the company says. It’s a shame they didn’t put rocket emojis in the announcement – after all, there’s no need to hold back. We all know exactly who AMC is talking to, and if they sign up today, they get free popcorn. I can’t make this shit up.
This is also, essentially, the opposite of what GameStop did, which is: say nothing at all. You got the feeling that maybe the executive team was nervous that everything they were saying might be securities fraud. However, AMC has chosen to really embrace the whole meme thing. I hope there are more announcements where they get more meme-like. For example, retail investors get a free Lego rocket in the fourth quarter or something.
the monkeys from r/WallStreetBets have been good to AMC. The personal theater company suffered from the coronavirus, but the excitement of r/WallStreetBets in January essentially wiped out $600 million in debt by by having the holders converted into stock. Meme enthusiasm essentially saved the company. (AMC also new stock issued issued because why not. “Apes strong together”, as they say at WallStreetBets!)
Many of the meme stocks are skyrocketing again. CNBC even has a “meme stock” image now.
Meme trading didn’t originate with stocks – it’s a strategic leap. You know what trades heavy on memes? cryptocurrency! (You remember “HODL”, right?) And you know what you do go lol nothing matters money is made up? Cryptocurrency too!
It was probably inevitable that traders would bring the nihilistic insights of cryptocurrency to the wider market. This real question is what the financial normals intend to do about it. For example, you can create cute little risk models and fill out your Excel spreadsheets, but how do you factor in the possibility that a roaming gang of irony poisoned redditors? can you blow up any moment?
You might say, “Hey, this is bull market exuberance.” You could also say, “Hey, interest rates are basically zero right now, so there’s a lot of money sloshing around.” Those things are true and they help. But what the internet learned in January is that it can make stocks go up, and some people will make money when that happens, and there’s nothing anyone can do to stop it. It may not even be fraud because no one lies. This started somewhere, and that somewhere was cryptocurrency. Of course, when you take this strategy to the wider market, you may also be able to fuck a bunch of big, serious companies, which makes trolling even nicer.
Anyway, I hope the AMC investors enjoy their popcorn.