AMC now worth more than half the companies in the S&P 500

[NEW YORK] The moonshot surge in the shares of AMC Entertainment has vaulted it into the ranks of some of the world's most valuable companies.

The company has gone from a small cap to a large cap in the space of a few months. A 95 per cent gain amid a retail-trading frenzy on Wednesday left the movie-theater chain with a market capitalization of US$31.3 billion. That makes it more valuable than half of the companies in the S&P 500 Index.

AMC is now worth more than Tyson Foods and Delta Air Lines despite projections for the company to bring in a fraction of their revenues.

In the throes of the Covid-19 crisis that shuttered movie theatres across the world, AMC's market value hovered under US$500 million for much of last year.

Infatuation with the stock among a horde of retail traders began to turn the company's fortunes this year, a following its chief executive has embraced.

AMC capitalised on its recent gains by raising US$230 million directly from creditor Mudrick Capital Management earlier this week. Earlier on Wednesday, AMC added even more fuel to its rally when it said it would reward its retail investors with special screenings and free popcorn.

BLOOMBERG