Latest Meme Stock Rally in AMC is a Big Screen Farce

Hollywood studios and movie theater chains are undoubtedly hoping to put the Covid era behind them this weekend, the traditional start of the summer box office bonanza. The odds are in their favor. Whatever you think of the big movies opening—“A Quiet Place Part II” and “Cruella”—there’s sure to be crowds of people wanting to once again experience a movie in a theater, something that mass vaccinations have made possible. 

It’s particularly appropriate, then, that one of the big stories of the past couple of days has been the Redditor-driven “meme stock” rally in struggling movie theater chain AMC Entertainment. Just as was the case with GameStop earlier this year, Redditors see a chance to squeeze hedge funds short-selling AMC shares. Three weeks ago AMC shares were just under $10. Today the stock hit a high of $36.72—its highest point in four years—before falling back to around $26.