AMC to Meme Traders: Thanks for the Pump, Here’s the Dump

AMC Entertainment shares took a predictable 9% nosedive Friday after the theater chain decided to do what it does best: ride a meme-fueled stock pump straight into a share sale announcement. This time, the company plans to dump up to 50 million shares into the market whenever it feels like it, with Goldman Sachs running the register.

The announcement came just one day after Keith Gill, aka Roaring Kitty, the Mona Lisa of meme stock Twitter, broke his months-long silence on X with a cryptic post. Naturally, that was enough to send meme stock traders into a nostalgic buying frenzy, briefly pumping AMC shares before reality (and AMC management) kicked in.

AMC, and its main character CEO Adam Aron, says it’ll use the cash to pay down debt, refinance loans, and slap some upgrades on its theaters, including—you guessed it—more premium large-format screens. Ah, yes, because what every cash-strapped company needs is a few more IMAX knockoffs and a fresh coat of paint on its sticky carpets.

After years of being second fiddle to GameStop in the Meme Stock hierarchy, AMC has mastered the art of capitalizing on retail traders’ undying love by repeatedly issuing stock, swapping debt for equity, and pulling stunts like a reverse stock split that essentially turned bag holders into even smaller bag holders. Meanwhile, the share price is down 25% for the year, and some meme traders are stuck wondering if this is performance art.

Sure, AMC is trying to survive in a world where Netflix and chill beats overpriced popcorn, but at some point, you have to ask: who’s actually winning here? Not the shareholders, that’s for sure