AMC Entertainment (AMC) shares surged 5.25% in after-hours trading on Friday, riding the wave of renewed interest in meme stocks. This movement comes on the heels of significant developments at GameStop (GME), another prominent meme stock, which saw its shares climb 11.3% during regular trading hours.
The catalyst for this meme stock rally appears to be GameStop CEO Ryan Cohen's decision to increase his stake in the company. Cohen purchased 500,000 additional shares at $21.55 each, bringing his total ownership to approximately 8.4% of GameStop's outstanding shares. This show of confidence by a high-profile executive has reignited enthusiasm among retail investors, potentially spilling over to other meme stocks like AMC.
While there was no specific news directly related to AMC Entertainment, the stock's after-hours jump highlights the ongoing interconnectedness of meme stocks in the market. Investors seem to be drawing parallels between GameStop and AMC, both of which gained immense popularity during the 2021 meme stock frenzy. As the market digests the implications of Cohen's increased stake in GameStop, it appears that traders are positioning themselves for potential gains in related stocks, driving up AMC's share price in extended trading.
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