Benzinga - by Surbhi Jain, .
AMC Entertainment Holdings (NYSE:AMC) surged 25.6% to $5.44 in pre-market trading on Monday following a surprising development.
Keith Gill, famously known as “Roaring Kitty,” disclosed a substantial position in GameStop Corp on the r/Superstonk Reddit forum.
This disclosure reignited interest in meme stocks, propelling AMC into the spotlight again.
Roaring Kitty’s Impact and the Meme Stock Resurgence Gill’s re-emergence on social media platforms, particularly his activity on X (formerly known as Twitter), sparked a renewed wave of enthusiasm among retail investors.
Known for his pivotal role in the 2021 GameStop frenzy, Gill posted an image of a green reverse Uno card on Sunday evening, his first post since a series of memes last month.
pic.twitter.com/zUuccrKWZr— Roaring Kitty (@TheRoaringKitty) June 3, 2024
Related: Roaring Kitty Just Posted A Reverse Uno Card: What Does It Signal For GameStop, AMC Shares?
This simple yet symbolic act has reinvigorated interest in meme stocks, leading to dramatic spikes in shares of GameStop and AMC.
The brief yet impactful return of Gill saw GameStop shares soar 74% on May 13, while AMC experienced a near 80% surge. The excitement was palpable, with other meme stocks like Koss Corporation (NASDAQ:KOSS) also seeing significant gains.
However, the question remains: can this momentum be sustained?
What the Charts Indicate for AMC Stock Despite the initial surge, AMC’s share price has settled at $4.92, reflecting a moderate bullish trend.
Chart: Benzinga Pro
The technical indicators provide a mixed bag:
- The 8-day simple moving average (SMA) of $4.66 and the 20-day SMA of $4.45 both signal bullish momentum.
- The 50-day SMA at $3.70 further suggests bullishness, indicating a short-term positive outlook.
- However, the 200-day SMA at $6.70 signals longer-term bearishness, suggesting potential challenges ahead.
Yet, the disappointing Memorial Day weekend box office results, with domestic ticket sales down 22% year-over-year, highlight ongoing challenges in the cinema industry.
Investor Sentiment vs. Roaring Kitty Influence Market sentiment around AMC is heavily influenced by social media dynamics and influential figures such as Roaring Kitty.
Jim Cramer, host of CNBC’s “Mad Money,” recently advised investors to secure profits on AMC, stating, “Take out your cash, let the rest run.” This cautious approach underscores the volatility and speculative nature of meme stocks.
As AMC navigates this renewed attention, its future performance will be closely watched by retail investors and market analysts. The company's ability to adapt and capitalize on the meme stock phenomenon, while managing its operational challenges, will determine its trajectory in the coming months.
The return of Roaring Kitty has undeniably reignited interest in AMC and other meme stocks.
While the short-term outlook appears moderately bullish, the long-term sustainability of this rally remains uncertain.
Read Next: Roaring Kitty’s GameStop Resurgence: Why GME Could Be Poised For More Gains
Photo: Shutterstock
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