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AMC Entertainment Holdings Inc AMC shares are trading higher in Tuesday’s after-hours session amid strength in GameStop Corp GME, which jumped more than 30% after the company turned a surprise profit.
GameStop and AMC often move in tandem as the duo is extremely popular among retail investors who tend to favor heavily shorted stocks. GameStop and AMC are widely considered the original meme stocks after traders banded together on Reddit‘s r/wallstreetbets in early 2021 and sparked a massive short squeeze in the pair.
GameStop’s current short interest is around 21%, while 24% of AMC’s float is currently sold short, according to Benzinga Pro.
What Happened With GME: GameStop reported fourth-quarter revenue of $2.23 billion after the bell, which beat consensus estimates of $2.18 billion. The retailer reported surprise adjusted earnings of 16 cents per share, which easily topped analyst expectations for a loss of 13 cents per share.
Everything You Need To Know: GameStop Q4 Earnings Highlights: Shares Rocket Higher On Revenue, EPS Beat
GameStop ended the quarter with cash and equivalents of $1.39 billion. The company closed the period with an inventory position of $682.9 million.
GameStop said it continues to prioritize its collectibles category for long-term growth and highlighted recent cost-cutting initiatives, infrastructure upgrades, and its go-forward strategy focused on efficiency, profitability and pragmatic growth.
See Also: Trading Strategies For GameStop Stonk After Q4 Earnings
AMC Price Action: AMC has a 52-week high of $34.33 and a 52-week low of $3.77.
The stock was up 3.75% after hours at $4.57 at the time of publication, per Benzinga Pro.
Photo: Paul Sableman from Flickr.
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Image and article originally from www.benzinga.com. Read the original article here.