AMC Entertainment Holdings Inc AMC overtook long-time WallStreetBets-favorite GameStop Corporation GME in terms of valuation as its shares skyrocketed over 95% on Wednesday.
What Happened: Retail investor interest led to multiple so-called stonks soaring on Wednesday. AMC shot up 95.22% in the regular session to $62.55 and rose another 8.71% to $68 in the after-hours session.
GameStop shares surged 13.34% to $282.24 in the regular session.
See also: How to Buy AMC Stock
AMC now enjoys a market capitalization of $28.17 billion, which is greater than the $19.97 billion market cap of GameStop, the stock that was short squeezed by retail investors at the beginning of the year.
AMC surpassed GameStop in terms of market cap in just a span of a day. As per Tuesday's closing, GameStop had a market capitalization of $17.62 billion, and AMC of $14.43 billion.
AMC's market capitalization has surged 95.22% between Tuesday and Wednesday, while GameStop saw its valuation rise 13.34% in the same time frame.
Why It Matters: GameStop shares have surged 1,398.1% since the year began, while AMC shares have returned more than double that at 2,850.5% in the same time frame.
Traders and some sell-side analysts believe the return of moviegoers to theatres and the company paying off its debts will allow AMC to reemerge from a difficult period brought on by the COVID-19 pandemic.
AMC said Tuesday it had raised $230.5 million in new equity from Mudrick Capital in a private placement but shortly after the disclosure Mudrick reportedly sold off its entire stake. Mudrick based its decision on the shares being “overvalued.”
Other shares popular with retail investors also shot up on Wednesday. Nokia Oyj NOK ended the regular session with 5.01% gains at $5.45. The company’s shares rose 2.39% in the after-hours session to $5.58.
Blackberry Ltd BB soared 31.92% in the regular session on Wednesday to $15.25. Blackberry shares rose 3.02% in the after-hours trading to $15.71.
The resurgence in stonks led by AMC also marked the return of Keith Partick Gill, better known as Roaring Kitty, to Twitter. The retail investor posted several memes on Tuesday in a fashion similar to Chewy Inc CHWY founder Ryan Cohen.
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