AMC: The New Meme-Stock King

AMC's stock has surged dramatically, driven by retail investors and a new rewards program. Despite this, AMC's financial fundamentals remain weak, with significant debt and expected losses. Mudrick Capital profited from AMC's stock and bonds but later deemed the stock overvalued. The Reddit community has influenced hedge funds' short positions, but hedge funds are maintaining their stance. The market is cautious about post-pandemic valuations for companies like AMC.

What reward is AMC offering to its stockholders as part of its new program?

• Priority seating at theaters

• Free popcorn and exclusive screenings

• Discounted movie tickets

• Free streaming service subscription

How much money did AMC raise by selling shares to Mudrick Capital?

• $100 million

• $230 million

• $500 million

• $1 billion

What financial strategy did Mudrick Capital use to profit from AMC?

• Investing in AMC's competitors

• Buying AMC bonds at a discount and converting them to equity

• Acquiring AMC's assets

• Short selling AMC stocks

What financial challenge is AMC facing despite the stock rally?

• Decreasing market share

• Increasing long-term debt

• Lack of investor interest

• Declining movie quality

What action did the Reddit army compel hedge funds to take in January?

• Increase their short positions

• Slash their short exposure

• Invest in AMC

• Sell off all meme stocks