Pop

AMC debuts a loyalty program for individual investors, as shares nearly double in a day

Thursday, June 3, 2021 by Snacks
_It's on the house  [SolStock/E+ via GettyImages]_

It's on the house [SolStock/E+ via GettyImages]

The corn is popping... and AMC smells butter. AMC stock nearly doubled yesterday, rallying a whopping 95%. Shares popped so quickly that they triggered four NYSE trading halts — aka: the NYSE temporarily paused trading of AMC stock, because it moved too rapidly outside of its "price band." This year, the stock is up over 3,000%, and AMC now boasts a $28B market cap, up from $500M a year ago.

  • While it's hot: On Tuesday, AMC sold 8.5M new shares for $230M to an investment firm called Mudrick Capital.
  • Not the first time: AMC has sold shares multiple times this year to capitalize on its stock surges and raise cash.

The corn is free... AMC stock closed at a record high yesterday, even while 30% of movie theaters are still closed and some studios are going direct-to-streaming. Retail traders have rallied around the stock, helping AMC avoid pandemic bankruptcy. Now, AMC is turning its individual shareholders into loyalty members:

  • AMC unveiled a new portal on its website, just for retail investors. Shareholders can access exclusive promos, like discounts and invitations to special screenings.
  • A free (large) popcorn is another new perk for AMC retail investors, along with direct communications from CEO Adam Aron.
THE TAKEAWAY

AMC is catering to the retail investor... 3.2M individual investors own 80% of AMC shares. Now, AMC is taking steps to engage retail shareholders in a way we haven't seen before. In the words of AMC's Aron: "these people are the owners of AMC, and I work for them.” AMC's moves speak to the growing importance of retail investors in the markets.

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