AMC's epic 3,325% year-to-date rally now makes it bigger than these 10 well known companies
- AMC Entertainment's year-to-date rally of as much as 3,325% has catapulted the movie theater chain's market valuation to $30 billion.
- These 10 well-known companies are now worth less than the movie theater chain.
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AMC Entertainment's monster rally on Wednesday catapulted the movie theater chain to record highs, with its market valuation eclipsing $30 billion.
The stock saw its year-to-date gains surge to as much as 3,325% at the high of the day on Wednesday, as a frenzy for Reddit favorite "meme" stocks was revitalized following the late January surge in heavily shorted stocks like GameStop. The stock is up about 500% over the past week.
Shares of AMC Entertainment surged more than 100% in Wednesday trades, even after hedge fund Mudrick Capital quickly turned around and sold its more than $231 million stake in the company it had bought on Tuesday. But retail demand for shares overpowered the hedge fund sale, and the company is now rewarding its investors with free popcorn this summer when they hit the theaters, as well as exclusive screenings.
The surge in AMC Entertainment highlights its extreme volatility, and not all are convinced that the company can retain its current valuation. One analyst believes the company is only worth $1 per share. The company is not profitable and has been ravaged by the COVID-19 pandemic, which led to closures of its theaters for months.
And the overall outlook for the movie theater business is in a secular decline. Goldman Sachs outlined on Wednesday that shortening theatrical windows and growing alternative distribution of new movies, like streaming, will make it hard for movie theater operators going forward.
But for now, AMC Entertainment's $30 billion valuation makes it bigger than these 10 well-known companies.
1. Best Buy
Ticker: BBY
Market Cap: $29.2 billion
2. Tyson Foods
Ticker: TSN
Market Cap: $29.2 billion
3. Nokia
Ticker: NOK
Market Cap: $28.7 billion
4. ViacomCBS
Ticker: VIAC
Market Cap: $28.2 billion
5. Zillow Group
Ticker: ZG
Market Cap: $28.0 billion
6. Okta
Ticker: OKTA
Market Cap: $27.3 billion
7. Hormel Foods
Ticker: HRL
Market Cap: $26.1 billion
8. Sirius XM Holdings
Ticker: SIRI
Market Cap: $25.5 billion
9. Royal Caribbean
Ticker: RCL
Market Cap: $24.9 billion
10. Dollar Tree
Ticker: DLTR
Market Cap: $23.8 billion
