5 Popular Stocks Reddit’s WallStreetBets is Talking About Today

2. AMC Entertainment Holdings, Inc. (NYSE: AMC)

Number of hedge fund holders: 19  

AMC Entertainment Holdings, Inc. (NYSE: AMC) is a Kansas-based movie theatre chain founded in 1920. It is placed second on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. AMC stock has offered investors returns exceeding 243% in the past year. The company owns and runs more than 1,000 movie theatres and 10,700 screens in many different countries around the world. The company is one of the largest movie theatre chains in the United States. 

AMC Entertainment Holdings, Inc. (NYSE: AMC) posted quarterly earnings on May 5, posting earnings per share of -$1.42 for the first three months of 2021, missing market estimates by $0.04. The revenue for the first quarter of 2021 was close to $150 million. 

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $34 million in AMC Entertainment Holdings, Inc. (NYSE: AMC), up from 16 in the preceding quarter worth $24 million. 

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE: AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”