Why is AMC Stock Surging?

The movie theater (AMC) stock is red hot again, two weeks after its surprise mining investment.

[{"selector":"#anim-ba8fb35a-4ba6-4014-9fb7-9c1d865fc85d","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f7f96cf6-e4ee-4938-9863-ff0b011c6936","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The cinema chain AMC Entertainment’s (AMC) stock surged Monday afternoon after it announced it bought a stake in (HYMC).

[{"selector":"#anim-25114235-166a-4937-a397-7364611ab37b","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ce9a4f57-d64c-4107-9900-4492b921746e","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] After another week of a rapidly rising stock price, shares of AMC were soaring 22.2% at 11:30 a.m. EST on Monday

Later AMC stock went up 44.91% on Monday, closing at 29.33

[{"selector":"#anim-3f0e5972-8792-4564-b0ed-edf34835fbdd","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-919ae6ab-871e-4bc7-ae3e-6793b66db209","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

[{"selector":"#anim-cab4c72b-fc9e-4734-a11d-5adb824b7da0","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4cfa94c-b119-4677-afe3-4895b94976bb","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Meme stocks such as AMC and Gamestop (GME) have once again soared recently

[{"selector":"#anim-b8dfd31f-9874-425c-b296-9f55152c9cec","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-836d7fab-ea04-4ce4-9628-b032eb9c9bf4","keyframes":{"transform":["translate3d(114.60318%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] These meme stocks are often companies that have been struggling in the stock market

until some celebrity or retail trader decides to pour money into it

[{"selector":"#anim-db21ce2c-39dd-4086-8685-efa32b828903","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2ff02dcf-4fb6-404e-a0e0-bb75e0a143ec","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

[{"selector":"#anim-41617b31-1ccc-4293-a008-52f04bcc3ff1","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9192c6af-1126-4cc9-83b6-22b48ace4ce8","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Then, the stocks go up simply because everyone else is buying them

[{"selector":"#anim-be65b643-521e-4bd1-880c-9b356f647036","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-deb61ba0-94ac-403d-afdc-7a5bdeb4df45","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] CEO Adam Aron told Reuters investors should be on the lookout for more “transformational” deals.

[{"selector":"#anim-74085b0c-10f5-4e02-b1b2-e590ff835376","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-78a14578-f167-4fcb-8512-609b328fe0df","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Gamestop shares opened 11% higher than average last Wednesday

[{"selector":"#anim-1fcf7802-b658-46a2-9da3-1b45aaf0ce9e","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-489b18f7-5402-45f7-9518-84633e735b39","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] After chairman Ryan Cohen bought 100,000 shares of the brick-and-mortar video game retailer.

[{"selector":"#anim-386ae353-3408-404c-b574-840065c1f3b8","keyframes":{"opacity":[0,1]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ef53a1d3-d0cb-4375-8249-27c0b93e0836","keyframes":{"transform":["translate3d(115.23810%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Over the last five days, GME is up approximately 78% and AMC is up about 50%.