<p><img src="https://static2.businessinsider.com/image/602bbcdab3c2a800183cce3f-2400/gettyimages-1224894717.jpg" border="0" alt="amc movie theater nyc covid19" data-mce-source="Noam Galai/Getty Images" data-mce-caption="A view outside AMC 34th Street 14 movie theater during the coronavirus pandemic on May 14, 2020 in New York City."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><a href="https://markets.businessinsider.com/stocks/amc-stock"></a><strong>AMC gained as much as 15% in early Tuesday trading as Reddit traders piled into the theater chain's shares.</strong></li><li><strong>While the day-trading phenomenon died out earlier this month, Tuesday's climb suggests the crowd still holds some sway in the market.</strong></li><li><strong>Reopenings and vaccination could lift AMC from its COVID-19 slump, one Reddit user said.</strong></li><li><strong><a href="https://markets.businessinsider.com/stocks/amc-stock">Watch AMC trade live here</a>.</strong></li></ul><hr><p><a href="https://markets.businessinsider.com/stocks/amc-stock">AMC Entertainment</a> surged as much as 15% in early Tuesday trading as retail investors banding together in online forums returned to the struggling theater chain.</p><p>The world's biggest movie-theater company saw its stock price skyrocket in late January as traders in Reddit groups including r/wallstreetbets piled into highly shorted stocks. Shares soared as high as $20.36 on January 27 before plunging back to earth as the day-trader phenomenon fizzled out.</p><p>Tuesday's price action suggests the crowd of casual investors is still somewhat in it. The gains placed shares at their highest in about a week. Posts on Wall Street Bets hailed AMC as a top recovery play and praised the company's <a href="https://www.businessinsider.com/amc-seizes-on-rally-to-sell-stock-but-misses-even-bigger-payday-2021-1">recent stock sales</a> as a key lifeline. Vaccinations and economic reopening could revive AMC from its virus-induced downturn, Reddit user u/ImFedUpWithItAll said in a post detailing his bullish thesis.</p><p>"I'm not Buffett so I'm not buying for life. I'm in this for the rally to normalcy," they added.</p><p>AMC was the most heavily traded company on the New York Stock Exchange before the market opened. Other stocks featured on Wall Street Bets fared worse. Investors looking to lift <a href="https://markets.businessinsider.com/stocks/pltr-stock">Palantir</a> saw shares tumble in early trading. <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a>the group's favorite stock during the January rallyrose slightly.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" target="_blank" rel="noopener">GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target themand the group has already nearly doubled over the past 3 months</a></em></p><p>The theater chain was among the few companies able to convert extraordinary retail-trader demand into a stronger balance sheet. The company raised more than $300 million last month by selling shares during the Reddit-trader rally. When coupled with a $411 million credit line, the fundraising efforts took bankruptcy talks "completely off the table," CEO Adam Aron said in a <a href="https://www.businesswire.com/news/home/20210125005273/en/AMC-Raises-917-Million-of-Fresh-Investment-Capital-Since-Mid-December-of-2020">statement</a>.</p><p>To be sure, locations in key markets including California and New York remain closed as COVID-19 cases rise across the country. The halt to regular operations endangered the company earlier in the pandemic and forced <a href="https://markets.businessinsider.com/news/stocks/amc-theaters-stock-price-cash-out-closures-delayed-movie-releases-2020-10-1029675736">warnings of extinguished cash reserves</a>.</p><p>Daily COVID-19 case counts have since fallen, prompting investors to shift back into so-called reopening sectors including travel, leisure, and entertainment.</p><p>AMC closed at $5.59 on Friday, up roughly 158% year-to-date. The company has three "buy" ratings, 10 "hold" ratings, and four "sell" ratings from analysts, with a median price target of $3.99.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/bitcoin-bubble-ubs-cryptocurrency-could-become-worthless-volatility-not-currency-2021-2" data-analytics-position="1" data-analytics-module="">UBS says bitcoin is a bubble and too volatile to diversify a portfolio, unlike goldhere's why the bank says it could end up 'worthless'</a></em></p><p><a href="https://markets.businessinsider.com/news/stocks/amc-entertainment-stock-price-reddit-investors-wallstreetbets-daytraders-economic-reopening-2021-2-1030087782#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-to-do-your-own-taxes-for-the-very-first-time-2018-2">July 15 is Tax Dayhere's what it's like to do your own taxes for the very first time</a></p>
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