The movie chain AMC will create free popcorn for investors as part of a plan to engage retail investors more closely, with most signing up on how companies are tapping into the frenzy of “meme stock” trading.
The plans, released on Wednesday, show that shares of day-trading firms have risen in recent weeks, prompting DIY investors to raise sharp volatility in individual stocks in an otherwise indifferent market.
The new U.S. Investor Connect program, the largest U.S. cinema chain, will offer a different kind of invitation to “special screenings,” explaining how the growing power of individual entrepreneurs is attracting both professionals. Wall Street investors And publicly listed companies.
Shares of AMC rose 24 percent on Wednesday, up more than 300 percent from last month. The movie theater industry has benefited even after struggling to regain its footing after suffering a deep blow at the height of the epidemic. As governments tighten social sanctions, groups like AMC are expected to increase crowds in the summer.
Record-highs in the first two months of this year, such as meme stocks, became a spotlight during retailers’ business run by messaging boards on social media platforms such as Re / Wall Streetbates and Reddit.
According to Piper Sandler, retail investors entered the market in record numbers after the retail volume doubled between 2012 and 2021.
One of the main beneficiaries of AMC is a clutch. Fancy traders are now a core group of AMC’s overall shareholder base that owns about 80 percent of the company. As of March 2021, more than 3.2 million new individual investors have joined the company, AMC said on Wednesday.
Large investors have also made idden waves. On Tuesday, AMC said it sold 8.5 million new shares for hedge fund Monetary Capital Management for about $ 27 million – a large premium to AMC’s share 2 share price at the end of last year. Hours later, the printer sold the shares after news of the fundraising sent them 33 33.53.
Other listed U.S. companies are also thinking about how to best connect with the new generation of retail shareholders and their growing power in the market. Shareholder engagement events such as general meetings were moved online during the epidemic, making daily investor participation and voting easier.
General meeting operator Lumi said it has noticed a significant increase in engagement from retail shareholders, both attending general meetings as well as asking questions and participating in voting. It is broadened by easy-to-use brokerage platforms like Robinhood that email shareholders to inform them of their voting deadlines.
“The agencies are saying the demographics of the people who have attended our meetings. It’s not a crowd of tea and biscuits, “said Richard Taylor, chief executive of Lumi.” Once you remove the barriers to who can come in, the population is changing.