June 3, 2021
The term, “meme stock,” refers to investments that have become sought after by retail investors trading on apps such as Robinhood. Trading in meme stocks is mainly driven by the fear of missing out (FOMO). Traders ignore the fundamentals and focus on the potential.
The theater chain on Wednesday announced AMC Investor Connect— a program that will offer investors ve some perks (and, more importantly, get people back into theaters). Up first: A free large tub of popcorn.
“During my five-plus year tenure as CEO at AMC, I’ve taken great pride in the relationships I have forged with AMC’s owners,” said Adam Aron, president and CEO of AMC in a statement. “With AMC Investor Connect, that effort in relationship-building will continue apace, even if our shareholders now number in the millions. After all, these people are the owners of AMC, and I work for them.”
But the company isn’t exactly insisting on proof of ownership. Signing up for the program is done simply by checking a checkbox on the signup page. (You’ll also have to be a member of AMC’s loyalty program, called AMC Stubs.)
The program was warmly welcomed on Reddit’s r/WallStreetBets community, which is where a lot of the AMC enthusiasm is generated.
“This is a ceo who understands. I love it!,” exclaimed JurassicPark-fan-190, while Hard2Digest used the program to further pump the stock, saying “[Aron] is giving away FREE large popcorn. The LEAST you apes can do today is buy 1 more share. Just one share. 3.2million apes, let’s keep pushing.”
Twitter was just as enamored with the announcement.
AMC said over 3.2 million individual investors held an ownership stake in the company as of March 11. That number has certainly gone up since then. The theater chain is now more than 80% owned by individual investors.
Research contact: @FortuneMagazine