Shares of AMC Entertainment Holdings Inc. AMC, +8.03% surged 5.8% in premarket trading, putting them on track for a sixth-straight gain to the highest close in more than four months.
The “meme” stock had already rocketed 52.3% as it rose every day last week, to post the biggest weekly gain since it soared 83.4% during the week ended June 4, 2021. The rally comes as the movie theater operator announced last week it will issue a special “APE” dividend, in the form of AMC Preferred Equity Units that will trade on the New York Stock Exchange. Separately, J.P. Morgan analyst David Karnovsky said in a note to clients Monday about fellow movie theater operator Cinemark Holdings Inc. CNK, +3.22% that recent “robust domestic box office results” have made him “incrementally more constructive” about the potential recovery beyond 2022. Meanwhile, fellow “meme” stock GameStop Corp.’s GME, +8.57% gained 2.8% premarket, putting them on track for a ninth-straight gain, which would be the longest win streak since since it rose for 10 straight days through March 28, 2022. Shares of AMC have lost 18.5% year to date and GameStop has advanced 7.9%, while the S&P 500 SPX, -0.12% has shed 13.0%.