Is AMC stock the Best Meme Stock To Buy
Is AMC stock the Best Meme Stock To Buy
Is AMC stock the Best Meme Stock To Buy
Is AMC Entertainment Holdings, Inc. (AMC) the Best Meme Stock To Buy Right Now?
What are Meme Stocks?
Meme stocks are a unique phenomenon in the financial market that have gained significant attention in recent years. They are stocks that have surged in popularity and value primarily due to social media trends and viral online discussions rather than traditional fundamental or technical analysis. These stocks often become the subject of widespread memes, jokes, or enthusiastic support on platforms like Reddit, Twitter, or TikTok. For example, GameStop and AMC Entertainment became famous meme stocks in 2021 when retail investors, coordinated through online forums like Reddit’s WallStreetBets, bought large quantities of shares to drive up their prices. This was partly motivated by a desire to challenge short-sellers who had bet against these companies. Meme stocks highlight how social media sentiment and collective investor behavior can have a profound impact on stock prices, sometimes leading to dramatic and unpredictable market movements that deviate from conventional financial logic.
Meme stocks emerged as a trend in late 2020 and early 2021 when online communities started promoting certain companies’ shares and generating buzz to attract buyers. The rise of commission-free trading platforms and online investing groups during the COVID-19 pandemic played a major role, as many people were at home with extra funds from government aid. Low interest rates may have also encouraged new investors. Meme stock investing was particularly appealing to younger investors who preferred it over traditional investment strategies.
AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 20
AMC Entertainment Holdings, Inc. (NYSE:AMC) operates movie theaters across the United States and Europe, where it owns, manages, or holds stakes in different locations. It became one of the most well-known meme stocks during the 2021 market surge. On January 16, AMC announced that starting from 2025, AMC Stubs Insider members can qualify for the new AMC Stubs Premiere GO! status by watching at least eight movies or earning 5,000 AMC Stubs points within a calendar year. This upgrade offers extra perks, including double points on every dollar spent and waived online ticket fees for purchases of four or more tickets.
AMC Entertainment Holdings, Inc. (NYSE:AMC)’s revenue grew 18% year-over-year in the fourth quarter of 2024, with adjusted EBITDA reaching $164.8 million. This was more than three times what it made in the same period last year. This growth was driven by the success of films like Gladiator 2, Wicked, Moana 2, and Mufasa: The Lion King, among others. The company also generated over $200 million in operating cash flow and $114 million in free cash flow, marking its strongest quarterly cash flow since the pandemic. AMC is among the best meme stocks to invest in.
According to Insider Monkey’s fourth quarter database, 20 hedge funds were bullish on AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 16 funds in the prior quarter. Jim Simons’ Renaissance Technologies was the largest stakeholder of the company, with a position worth nearly $20 million.
Overall, AMC ranks 13th on our list of best meme stocks to buy right now. While we acknowledge the potential of AMC to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Is AMC Entertainment Holdings, Inc. (AMC) the Best Meme Stock To Buy Right Now?
What are Meme Stocks?
Meme stocks are a unique phenomenon in the financial market that have gained significant attention in recent years. They are stocks that have surged in popularity and value primarily due to social media trends and viral online discussions rather than traditional fundamental or technical analysis. These stocks often become the subject of widespread memes, jokes, or enthusiastic support on platforms like Reddit, Twitter, or TikTok. For example, GameStop and AMC Entertainment became famous meme stocks in 2021 when retail investors, coordinated through online forums like Reddit’s WallStreetBets, bought large quantities of shares to drive up their prices. This was partly motivated by a desire to challenge short-sellers who had bet against these companies. Meme stocks highlight how social media sentiment and collective investor behavior can have a profound impact on stock prices, sometimes leading to dramatic and unpredictable market movements that deviate from conventional financial logic.
Meme stocks emerged as a trend in late 2020 and early 2021 when online communities started promoting certain companies’ shares and generating buzz to attract buyers. The rise of commission-free trading platforms and online investing groups during the COVID-19 pandemic played a major role, as many people were at home with extra funds from government aid. Low interest rates may have also encouraged new investors. Meme stock investing was particularly appealing to younger investors who preferred it over traditional investment strategies.
AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 20
AMC Entertainment Holdings, Inc. (NYSE:AMC) operates movie theaters across the United States and Europe, where it owns, manages, or holds stakes in different locations. It became one of the most well-known meme stocks during the 2021 market surge. On January 16, AMC announced that starting from 2025, AMC Stubs Insider members can qualify for the new AMC Stubs Premiere GO! status by watching at least eight movies or earning 5,000 AMC Stubs points within a calendar year. This upgrade offers extra perks, including double points on every dollar spent and waived online ticket fees for purchases of four or more tickets.
AMC Entertainment Holdings, Inc. (NYSE:AMC)’s revenue grew 18% year-over-year in the fourth quarter of 2024, with adjusted EBITDA reaching $164.8 million. This was more than three times what it made in the same period last year. This growth was driven by the success of films like Gladiator 2, Wicked, Moana 2, and Mufasa: The Lion King, among others. The company also generated over $200 million in operating cash flow and $114 million in free cash flow, marking its strongest quarterly cash flow since the pandemic. AMC is among the best meme stocks to invest in.
According to Insider Monkey’s fourth quarter database, 20 hedge funds were bullish on AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 16 funds in the prior quarter. Jim Simons’ Renaissance Technologies was the largest stakeholder of the company, with a position worth nearly $20 million.
Overall, AMC ranks 13th on our list of best meme stocks to buy right now. While we acknowledge the potential of AMC to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.