NYSE:AMC gained 3.05% on Monday triggering a meme stock rally.
Walt Disney agrees to debut its 2021 movies in theaters before Disney+.
Analysts are once again getting bearish on AMC even as the stock continues to climb.
NYSE:AMC started the week off the way it ended last week: riding higher. Shares of AMC breached the $50.00 barrier on Friday for the first time since July and continued to ride that momentum during Monday’s session. Shares of AMC jumped by 3.05% and closed the first trading day of the week at $51.69. AMC’s bullishness was contagious, as fellow meme stocks like GameStop (NYSE:GME) surged by 6.79%, and SmileDirectClub (NASDAQ:SDC) rose by 16.12%, amongst others.
The main catalyst behind AMC’s resurgence has been entertainment conglomerate Walt Disney (NYSE:DIS) putting its faith back into theaters. Just months ago, Disney announced it would be simultaneously releasing its new blockbusters in theaters and on Disney+. The plan resulted in a lawsuit from Black Widow star Scarlett Johansson, and upset numerous other figures in the movie industry. On Monday, Disney backtracked on its pandemic plan and reported that its new releases for the rest of 2021 would see an exclusive period in theaters for the first 45 days. While this period used to be three months, AMC CEO Adam Aron was publicly thankful for the change on his social media accounts.
Analysts and institutions are getting noticeably bearish on AMC stock again, despite the fact that its share price continues to rise. A Changebridge Capital analyst revealed that the firm has two ETFs that are actively shorting both AMC and GameStop. This comes on the heels of Macquarie Group downgraded AMC stock and provided a price target of $6.00 last week.