You are here

AMC's epic 3,325% year-to-date rally now makes it bigger than these 10 well known companies (AMC)

Submitted by Tech Insider on June 2, 2021 - 3:45pm

NYSE trader worried

Summary List Placement


AMC Entertainment's monster rally on Wednesday catapulted the movie theater chain to record highs, with its market valuation eclipsing $30 billion.

The stock saw its year-to-date gains surge to as much as 3,325% at the high of the day on Wednesday, as a frenzy for Reddit favorite "meme" stocks was revitalized following the late January surge in heavily shorted stocks like GameStop. The stock is up about 500% over the past week.

Shares of AMC Entertainment surged more than 100% in Wednesday trades, even after hedge fund Mudrick Capital quickly turned around and sold its more than $231 million stake in the company it had bought on Tuesday. But retail demand for shares overpowered the hedge fund sale, and the company is now rewarding its investors with free popcorn this summer when they hit the theaters, as well as exclusive screenings.

The surge in AMC Entertainment highlights its extreme volatility, and not all are convinced that the company can retain its current valuation. One analyst believes the company is only worth $1 per share. The company is not profitable and has been ravaged by the COVID-19 pandemic, which led to closures of its theaters for months.

And the overall outlook for the movie theater business is in a secular decline. Goldman Sachs outlined on Wednesday that shortening theatrical windows and growing alternative distribution of new movies, like streaming, will make it hard for movie theater operators going forward.

But for now, AMC Entertainment's $30 billion valuation makes it bigger than these 10 well-known companies.

1. Best Buy

Ticker: BBY
Market Cap: $29.2 billion

Best Buy

2. Tyson Foods

Ticker: TSN
Market Cap: $29.2 billion

tyson foods meat plant

3. Nokia

Ticker: NOK
Market Cap: $28.7 billion

FILE PHOTO: Visitors gather outside the Nokia booth at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Sergio Perez/File Photo

4. ViacomCBS

Ticker: VIAC
Market Cap: $28.2 billion

Paramount Plus

5. Zillow Group

Ticker: ZG
Market Cap: $28.0 billion

Zillow

6. Okta

Ticker: OKTA
Market Cap: $27.3 billion

Okta Bell

7. Hormel Foods

Ticker: HRL
Market Cap: $26.1 billion

hormel foods logo spam skippy

8. Sirius XM Holdings

Ticker: SIRI
Market Cap: $25.5 billion

sirius xm

9. Royal Caribbean 

Ticker: RCL
Market Cap: $24.9 billion

Royal Caribbean

10. Dollar Tree

Ticker: DLTR
Market Cap: $23.8 billion

dollar tree

Join the conversation about this story »

NOW WATCH: Why 'moist' is one of the most hated words in the English language