By Dhirendra Tripathi
Investing.com — Meme stocks such as AMC (NYSE:AMC), GameStop (NYSE:GME) and BlackBerry (NYSE:BB) were all up 2%-2.5% in Monday’s premarket, pointing to a relatively subdued start to the week for investors accustomed to double digit gains.
In the case of AMC, the hottest of them for now, traders may be trying to gauge where the company is headed.
After raising $1.24 billion in equity in three installments in less than a month, each at a different price, it filed a preliminary proxy on Thursday seeking permission to sell 25 million more shares in 2022.
It has been a roller-coaster for AMC traders who saw their stock double in just one session on Wednesday to hit a high of $83.63, only to fall in double digits on announcement of a new equity raise. The shares closed at $66.80 Friday.
The pandemic has caused AMC’s long-term debt levels to soar to $5.4 billion as of the first three months of this year from less than $2 billion in 2016. And it’s still losing money, with analysts expecting another $100 million to go over the next 12 months.
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