AMC - Is Redbox Entertainment the New AMC Stock?
The market's hottest stock is a name you might know, but a winner you probably didn't expect. Shares of Redbox Entertainment (NASDAQ: RDBX) have more than quadrupled over the past two weeks. Yes, that Redbox.
It's fair to argue that the upticks haven't been exactly earned by the company that seems to have lost its relevance over the years. The company behind the automated vending machines outside of select retailers that spit out movie discs and video games has had its share of problems over the years. Do you even own a DVD or Blu-ray player anymore?
However, the stock's surge on a burst of trading volume finds market speculators connecting the meteoric ascent to the surge we saw in AMC Entertainment Holdings (NYSE: AMC) and other meme stocks last year. Despite media distribution models that have been largely fading over the past two decades -- DVD sales peaked in 2005 and the multiplex record for the most tickets sold was set in 2002 -- hope springs eternal when the online masses rally around retro charm. Redbox is back, but the sustainability of its gains could prove flimsy.
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Is Redbox Entertainment the New AMC Stock?