AMC Offers Investors Free Tickets And Popcorn Amid Massive Recent Stock Surge
Cinema chain AMC says investors who stick with the company will receive free tickets and snacks in an attempt to maintain their recent growth.
In a statement announcing the launch of new shareholder platform AMC Investor Connect, the company promised the millions of investors who bought into the company this year ‘exclusive promotions, including free or discounted items, and invitations to special screenings,’ and the immediate offering of a free large popcorn to take into any movie this summer.
You might remember AMC being one of the brands that saw its stock price surge during the ‘meme stocks’ trend a few months ago. Well, far from dropping off after the highs of the GameStop saga, AMC has continued to benefit from the trend, and last week reached an all time high share price of $36.72, as amateur investors have continued to rally round the company.
Now, in an attempt to keep investors sweet, AMC has announced a ‘groundbreaking new approach’ to investor relations, in what they describe as the first steps towards putting the company ‘in direct communication’ with shareholders.
The company revealed in a press release that retail investors – mainly, those who invested during the ‘meme stocks’ frenzy – currently own around 80% of the company, with more than 3.2 million individuals owning a stake in the cinema chain as of March 2021.
Axios reports the meme stocks trend has seen a loyal and dedicated group of investors, who refer to themselves as the ‘ape army,’ continue to back the company against hedge funds looking to short AMC stock. And in yet more evidence of the power of social media investor movements, incredibly, AMC was the single most traded stock during the month of May.
According to CNBC, the company has adapted its tactics to reach its younger, social media-savvy investors, with CEO Adam Aron himself recently following hundreds of ‘ape army’ investors on Twitter.
In a statement, Aron said, ‘Many of our investors have demonstrated support and confidence in AMC. We intend to communicate often with these investors, and from time to time provide them with special benefits at our theaters.’
The massive surge in stock value has been a much needed ray of light for the company, which has struggled massively with the pandemic’s continued impact on cinemas and the wider entertainment industry.
But unfortunately, even the ape army may not be enough, with Axios reporting that some analysts still expect the company to file for bankruptcy by the end of the year.
Featured Image Credit: PA Images/Pexels
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