AMC Embrace of Day-Trader Crowd Fuels Dizzying Monthly Gain
- Rally briefly pushed theater chain market value to $17 billion
- CEO praised support from internet traders earlier in May
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Adam Aron, the CEO of AMC Entertainment Holdings Inc., knows what the Reddit retail-trading crowd has done for his company. The money-losing movie chain’s wild, four-month rally never would have happened without these small-time investors.
So earlier this month, Aron embraced them in a way that few, if any, other top executives in America have. He spoke directly to the new investors during the company’s quarterly conference call on May 6, cheering their passion, commitment and enthusiasm. He then urged the skeptical stock analysts to pay attention to these investors -- “read what these people write,” he told them.