AMC and GameStop Frenzy Goes Beyond Casino Mentality
Mohamed A. El-Erian, 02 June 2021
It has only been a few months since Reddit-enabled retail investors, or what some unflatteringly refer to as the “retail mob,” embraced GameStop Corp. and drove its valuation to the moon only to be frustrated by a sudden change against them in the rules of the game. Today, it’s all about AMC Entertainment Holdings Inc., whose skyrocketing value this week has already overcome what would normally curtail investor enthusiasm. The similarities are notable, as is the broader message about what is happening to the investment landscape.
Both phenomena involve an investment thesis, effective amplifiers and lots of cash to invest and borrow on margin. Continue reading “Article: AMC and GameStop Frenzy Goes Beyond Casino Mentality”
