Many investors were thinking they had left the chaos created by WallStreetBets in the past, but yesterday’s developments have shown this gamma squeeze is far from over. AMC Entertainment Holdings’ share price has experienced a dramatic rise, along with many of the other so-called ‘meme stocks’ such as GameStop, Nokia (NOK), Naked Brand Group (NAKD), and BlackBerry (BB).
To help you benefit from these unique market conditions, this article hones in on buying shares in AMC Entertainment (AMC). It explains how to buy AMC shares, where to buy AMC shares and the best place to do it.
Where to buy AMC stock fast
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When looking for the best place to buy AMC, you should choose a reliable broker that will allow you to open and close positions quickly to take advantage of market fluctuations.
We have made finding the best broker to buy AMC stock easy by listing 3 of the best options below. All 3 of these platforms are reputable and popular brokers that you can rely on. After brokers like Robinhood decided to sell their own users’ shares without permission several weeks ago, choosing a good broker to invest in AMC is more important than ever.
1.) Trading 212
As one of the UK’s most respect online brokers, Trading212 is one of the best places to buy AMC. If you sign up, expect to find a clear interface with reliable tools that can help you invest in AMC and trade AMC stock effectively.
If you want to buy shares in AMC, eToro is one of the top options. As one of Europe’s largest online broker platforms, eToro is a trustworthy platform that has a variety of unique features that are well-suited to inexperienced and professional investors alike.
Plus500 will allow you to invest in AMC using contracts for difference (CFDs). This means that you can gain exposure to the price of AMC stock without having to own AMC shares outright. This is a flexible way for you to invest in AMC, and Plus500’s reputation is industry-leading.
If none of our 3 recommended online brokers have attracted your attention, head over to our reviews page for a more comprehensive selection of broker options. If you need to learn more about buying shares in general before you buy AMC shares, make sure you check out our introductory explanation of buying shares.
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What is AMC Entertainment Holdings?
If you are a regular cinema-goer, you will likely already know what AMC is. Headquartered in Leawood, Kansas, and listed on the New York Stock Exchange, AMC stands for American Multi-Cinema; in some countries, the company is known as AMC Cinemas.
Founded back in 1920, AMC has developed over the course of a century to become the single largest move theatre chain globally. The company holds a much larger piece of the U.S. theatre market pie than rivals like Cinemark Theatres and Regal. With 2,866 screen in 358 theatres across Europe, and a whopping 7967 screens in 620 theatres in the United States, it is little surprise that AMC has experienced such meteoric growth from humble beginnings.
Why is AMC flying up in value?
Lockdowns caused by COVID-19 have hit the cinema industry hard, and whilst AMC managed to reopen the majority of its theatres by August 2020, the company’s share price continued to decline. Even a multi-year deal with Universal Pictures didn’t seem to be able to sweeten the value proposition for investors.
Some investors bought into the idea that after the pandemic is brought under control, demand for movie theatres will experience a major boom. Because AMC holds such a monopoly in this regard due to the scale of its operation, it would be primed for growth if this thesis proves to be correct.
Contrastingly, other investors noticed that some of America’s major hedge funds were betting against an AMC renaissance, opening up huge short positions against the company. However, once a swathe of Reddit investors caught wind of this, the hedge funds’ positions became vulnerable to exploitation by retail investors. By continually buying AMC shares and driving their value up, hedge funds have been forced to chase their losses by repurchasing shares at a much higher price, accelerating the price rise even further.
AMC’s recent rise is down to a contribution of these two factors, and if you want to invest in AMC, you need to figure out your own investment thesis to maximise returns.
The market reacts to AMC’s rise
Investors on social media have been very active in discussing AMC’s share price rise.
This drama undoubtedly has a long way left to run, so stay up-to-date with the latest news and developments via Invezz.