GameStop shares surge on first day of trade as largecap stock, AMC zooms 7% despite not make the cut

GameStop and AMC are two of the most popular meme stocks.
(Image: REUTERS)

Popular memes stock GameStop has gone from a smallcap stock, favoured by short-sellers to a large-cap stock and the newest member of the FTSE Russell 1000 index. Helped by new traders and Reddit users, GameStop shares have now soared a massive 4,802% in the last one year with a market capitalization of $15 billion. Meanwhile, AMC Entertainment Holdings, another fellow meme stock still remains in the FTSE Russell 2000 index of smallcap stocks. AMC’s share price has also seen a monstrous 400% rally since the end of April this year.

GameStop now a largecap stock

GameStop was included in the FTSE Russell 1000 index on Monday. The stock joins big names such as Amazon, Adobe, Apple Inc., AT&T, Brookfield Property, Alphabet, Facebook, Twitter, and Visa. GameStop was inducted into the largecap index as a part of FTSE’s annual reconstitution of indices. The largecap index consists of 1000 of the biggest companies on Wall Street.

With Reddit traders lifting the stock higher despite odds, GameStop’s market capitalization has gone from $300 million last year to $15 billion yesterday. Last week shares of the video game retailer surged higher after the company sold 5 million equity shares to raise $1.13 billion in an effort to accelerate growth. Earlier the company had sold 3.5 million shares in April to raise $551 million. GameStop share price soared 1.79% higher at $213.25 per share on Monday.

AMC fails to make the cut

Although AMC Entertainment Holdings was not inducted to the Russell 1000 index, despite having a larger market capitalization than GameStop, investors still continue to pile onto shares of the company. AMC is one of the recent favourites of meme stock enthusiasts and Reddit traders. The stock has zoomed 478% since the first week of May. The cut-off date for consideration to be inducted to the index was May 4. AMC has a market capitalization of more than $28 billion. The stock surged 7.49% higher on Monday to end the day’s trade at $58.11 apiece.

The recent jump in AMC’s stock price comes as the US gets back to the old normal and people head back to movie theaters. “What a weekend for the big screen! Due to a gangbuster opening of @UniversalPics F9,  2.0 million people watched a movie in @AMCTheatres Thursday through Sunday in the U.S., and 2.5 million people did so at our theatres globally. Both RECORD NUMBERS since re-opening our theatres,” Adam Aron, the CEO of AMC said in a tweet.

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GameStop shares surge on first day of trade as largecap stock, AMC zooms 7% despite not make the cutFinancial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

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