AMC CEO Adam Aron Doubles Down On Meme Strategy With New $APE Stock

AMC, the well-known movie theater company, has created a new class of stock share that goes by the ticker symbol $APE, in an obvious nod to the meme stock retail investors that arguably kept the company afloat through the pandemic.

For every AMC stock, one APE token will be issued. The APE tokens do not have voting privileges, but they will have a market-determined value. Many companies sell different types of share, and it is sort of like a stock split by other means. AMC may need to raise money amid bad news for the in-person theater industry in general, as rival Regal Cinema reported less than stellar results and another rival (Cineworld) has announced it is considering filing for bankruptcy.

AMC’s CEO Adam Aron decided to make meme stocks a central piece of its business strategy going forward. The company has created various perks and events for stockholders, including hosting meet-ups at its movie theaters and offering free food to investors.

Aron appears to be personally leading this effort, welcoming meme investors and creating content specifically for them. His experimental approach, if followed by other companies, could change the way corporations are funded and the stock market functions.

The new APE units seem to have released total chaos upon the markets, with trading on the new shares and on AMC halted several times Monday morning. Many AMC investors expressed faith in the stonk’s future and excitement for impending monetary returns.

I only hold 63 shares so don't forget us little guys and take it to the moon so we can have our money changing money too. Let's have an amazing week! #AMC #APE

— #AMC #APE RichBitch🦍🚀🤑💵 (@JustMe57616577) August 21, 2022

The stock has, to some extent, capitalized on the populist anti-Wall Street sentiment, which has informed the meme stock movement.

These halts are nothing but pure, crime. Broker fraud. Hedge fraud. Wall Street blatant, shameless, FRAUD.The world must know. $AMC $APE 🚀🚀🚀🚀

— roguetrader (@hftquant_) August 22, 2022

Some in the tight-knit meme investor community urged others to hodl the stock.

I don’t know you and I don’t need to. What I do know is that you stood next to me shoulder to shoulder for the last 1.5 years. So know this. I will HODL #AMC & #APE for you & your family.I hope you HODL for me and mine. I will not sell a single share of #AMC or #APE

— YASAR (@YasarMian2) August 21, 2022

But some on Reddit's /r/wallstreetbets, epicenter of meme stock trading and analysis, were highly skeptical of the latest move by AMC. The $APE tokens are technically valueless but will trade on the market anyways. Some on /r/wallstreetbets seem to believe the $APE token is an intricate scheme to dilute the AMC stock, a move that shareholders voted down last year. AMC management might want the stock diluted because it would attract more buyers and more investment money.

Regardless of what happens, AMC shareholders will be able to get an "I own APE" NFT if they sign up for the Investor Connect service by August 31st.

Get yours free by joining AMC Investor Connect by August 31, 2022 https://t.co/eIH4vXNdAp pic.twitter.com/9hUFRLXSXD

— Adam Aron (@CEOAdam) August 4, 2022