Post by CrepedCrusader on Feb 2, 2021 0:55:56 GMT
WallStreetBets just saved AMC Theaters from almost certain doom
GameStop's share price skyrocketed this week thanks to the absurd power of online meme economics, and while it's been front and center this week, a number of other companies are also experiencing sudden, monumental reversals of (mis)fortune. AMC, the movie theater chain whose executives were bracing investors for its imminent demise just this past Monday, is now absolved of over $600 million in debt. And this isn't subject to change for when these various stock bubbles invariably burst — that's literally hundreds of billions AMC is no longer expected to pay back.
Even that much debt magically disappearing overnight won't solve all of AMC's woes, but executives estimate the payday should allow them to weather the rest of the pandemic's worst months until people begin to return to watching movies on the big screen.
AMC will also still face a competitive marketplace, especially in places like Britain where its UK rival, Cineworld, also saw similar stock jumps of 21%. Regardless, the chain finds itself in a far better position than it did this time last week. Even when the meme stock frenzy dies down, AMC theaters might have found a way to dodge what was looking like a one-way ticket to the grave.