Shares of movie-theater operator AMC Entertainment (NYSE: AMC) are part of the recent rise in Reddit-inspired trades. After jumping another 30% at Monday’s open, shares are trading 20% higher as of 9:35 a.m. EST.
Robinhood and various brokers continue to impose trading limitations on AMC and other stocks due to surging volatility. It’s clear the demand that caused shares to triple in just the last week continues as this trading week begins.
But the companies behind these momentum trades aren’t the same. While GameStop may be a declining business, AMC is looking to recover from the impact of the pandemic, hoping that people will return to its theaters. It’s a good time to look at the underlying business in the midst of this trading volatility.