CNBC host Jim Cramer said that shares of AMC Entertainment Holdings Inc. AMC and GameStop Corporation GME are within buying range.
What Happened: The “Mad Money” host noted that the two companies present buying opportunities as they prepare to reinvent themselves.
“I’m not against buying GameStop or AMC at these levels. GameStop’s currently below where I told you to ring the register in January,” Cramer said.
See also: How to Buy AMC (AMC) Stock
The television personality added that the two companies have the ability to reinvent themselves as the surge in their stock prices has enabled them to raise capital.
However, Cramer advised investors who bought these stocks at much lower levels to take “a little off the table as these stories could always get dinged.”
Why It Matters: Shares of GameStop, AMC Entertainment and other stonks — stocks that are favored by retail investors — have surged amid the retail trading frenzy. AMC Entertainment’s valuation shot past fellow stonk GameStop last week amid increasing interest from retail investors.
AMC Entertainment’s year-to-date returns stand at 2,227.36%, while GameStop’s stock has returned year-to-date gains of 1,505.94%.
However, GameStop’s shares fell in Wednesday’s extended trading session despite the company reporting better-than-expected earnings results for the first quarter as well as the appointment of a new chief executive officer and chief financial officer.
GameStop said it plans to file a supplemental report where it may offer to sell up to 5 million shares in “at-the-market” offerings.
AMC has capitalized on its stock’s massive surge and sold 20 million shares in two separate deals recently to raise over $800 million in cash.
Photo by Samantha Celera on Flickr
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