Stock Alert: How Long Can AMC Rally Continue?

(RTTNews) - AMC Entertainment Holdings Inc.'s (AMC) stock continued its fairy-tale run on Wednesday morning, with shares up over 30% currently, and reaching an all-time high.

On Wednesday, the theater chain announced the launch of AMC Investor Connect, a communication initiative that allows its shareholders to self-identify through the AMC website and receive important AMC special offers and company updates.

The other day, the company also announced that it sold $230.5 million in stock to Mudrick Capital Management. The movie theater operator said it would use the funds for potential acquisitions, upgrading its theaters and deleveraging its balance sheet.

Meanwhile, Bloomberg reported that the hedge fund later sold all of its AMC stock for a profit.

AMC has been on a dream run since last month. The stock is up more than 1,800% year-to-date. For the that period, the shares have traded in a range of $1.91-$41.76. This is indeed a miracle considering the fact that the theater chain was on the brink of bankruptcy last year affected largely by the coronavirus pandemic. Wall Street investors had bet on the stock to implode, however, the stock has been rallying on strong support from retail traders.

AMC is currently trading at $41.76, up $9.72 or 30.34%, on the NYSE.