What a difference a few weeks can make.
The very same stocks caught in the middle of the short-squeeze trading frenzy of January, that most of Wall Street chastised for their poor fundamentals and lack of viability, are all the sudden creeping into the good graces of many of the same analysts now.
And it’s entirely possible investors and a company like AMC (AMC) only have WallStreetBets to thank for that today.
Today, Wedbush analyst Michael Pachter doubled his share-price target for AMC, America’s largest movie-theater chain, helping propel shares as much as 62% this morning. In a note, Pachter said:
“AMC may take years before it is able to revisit its prior growth strategy as it repays its growing mountain of debt.”
That debt, however, as Pachter eludes to, is much less debilitating than it was prior to January’s trading activity, noting that AMC has raised enough cash by issuing stock and debt to enable the company to operate through mid-summer without substantial ticket sales. AMC took advantage of the recent burst in its shares to sell more stock and push the option of bankruptcy “completely off the table,” according to Chief Executive Adam Aron had said.
Bloomberg reported Monday that Chewy founder Ryan Cohen will lead the group’s shift towards e-commerce and online sales, which has helped propel shares of GameStop nearly 50% this morning.