AMC Entertainment jumps on chatter about Robinhood stock tokenization
AMC•AMC shares jump on Robinhood tokenization chatter
Shares of U.S. theater chain AMC Entertainment AMC.N were up 5.5% at $2.68 premarket.
The stock rose as much as 22.4% to $3.11 earlier in the day, with about 6.3 million shares changing hands.
Robinhood token offering draws criticism from AMC CEO
Robinhood HOOD.O has created a crypto-like token that tracks AMC's stock price but does not involve buying its shares or shareholder rights.
CEO Adam Aron called on HOOD to cease and desist the trading of the company's stocks in a post on X.com. Aron said AMC has no involvement in, and does not endorse, Robinhood's tokenized stock offering.
The stock tokens are offered through an offshore Jersey-based affiliate and are not registered under U.S. securities laws.
Aron's comments "have brought up AMC very much to the forefront of the retail crowd's agenda or focus," said Fiona Cincotta, senior markets analyst at City Index. She added that since the token offering is unregulated, it should be dealt with caution.
AMC is among stocks that have rallied several times over the past few years in sudden bouts of retail trader interest.
Robinhood shares were down 1.7% at $122.52.
