AMC stock pushers are another example of social media scariness

Published

2 years ago

September 4, 2023

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It was December of 2021. I had COVID and was on the verge of being officially diagnosed with prostate cancer. Things were pretty bad and suddenly got worse: I noticed Fire Gasparino trending on Twitter not because I had made up a story, or defamed someone.

My sin was reporting, continuously and accurately, that an investment cult had formed around the stock of the troubled movie theater chain known as AMC, pushing its shares well above where they should be. And like most cults, this one wouldnt end well.

The abuse lasted through Christmas. I guess I could have wilted and joined some of my colleagues in heralding the small investor-led movement around the stock as something biblical. David slays Goliath.

I didnt and kept reporting the story behind one of the most absurd and now costly stock pumps in recent history.

These days, Im glad I did.

Yes, I survived COVID, my cancer diagnosis and getting vilified by a Twitter mob just fine. In fact better than fine because of what happened next: The stock imploded as I reported it would. AMC was burning loads of cash, heading for bankruptcy or massive dilution to raise much-needed capital, neither good for shareholders.

Shares are down 95% since December 2021. About 10 days ago, the stocks crash and burn was complete as the company took concrete steps toward the issuance of a ton of new shares (aka diluting existing shareholders) and stay out of bankruptcy. Were it not for a bit of financial alchemy in a 10-for-1 reverse stock split, AMCs stock price would be reading just above $1.

Im not taking joy in people losing money but in people saving some. Anyone who followed my reporting on AMC saved themselves some real money. Those who followed cultists, the self-described AMC Apes or the cheerleading pseudo-journalists are paying the price.

Phil Graham, the brilliant but troubled former publisher of The Washington Post, came up with the truism about the profession of journalism as being the first rough draft of history. That was back in the early 1960s before he killed himself in a fit of depression.

I wonder what Phil Graham would call what goes down on the rebranded Twitter site X or any of the other instantaneous social-media feedback loops that are now competing with real reporting. A really, really, really rough draft of history?

Social media is great in so many ways. Yes, its a draft of history, even if its really rough, and that often serves a purpose through the exchange of ideas to make an informed judgment. Its also an outlet for people desperately searching for purpose, and while theyre at it, indulging in their worst instincts and behaviors. Its a breeding ground for the cult.

How cults are created is an age-old question. The result is deadly and near deadly stuff like Jonestown and Pizzagate and the financially deadly stuff that surrounded the stock of AMC. The weird notion that a cabal of greedy hedge funds, hell-bent on destroying the nations largest movie theater chain, were shorting the stock (betting its price would collapse) in dark corners of Wall Street does seem appealing.

That average people could buy this stock, and destroy a bunch of nasty hedge funds while becoming rich, even more so.

Just one problem: Nothing close to what the cult was blathering about was true. The evidence of this scheme thrown around Twitter or the Reddit message boards was of the wackadoo variety. And If you dared question the illogic, as I did, be prepared for harassment like youve never seen before.

The power of social media is intense and crazy, of course, and it made this cult particularly nasty and resilient over the past two-plus years. That is until the hammer finally fell just days ago and the AMC cult ended like they all do in disaster.

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Its a shame more reporters didnt call this out. It was so obvious based on what you can find on a balance sheet. Short sellers made hundreds of millions of dollars in August because AMCs finances included massive cash burn, lots of debt and movie attendance that due to streaming hasnt returned to pre-pandemic levels.

CEO Adam Aron, not exactly a short seller, recently explained AMCssituation in a call withanalysts. Business is getting better Barbenheimer was a box office hit; a Taylor Swift film coming to AMC theaters in October is crushing it in pre-sales. But he said that if he cant raise money by selling more stock, Chapter 11 is almost inevitable. He recently beat back an Ape-inspired lawsuit challenging his dilution plan, because they believe AMC is really doing just fine and doesnt need the money.

It does, of course, and the coming dilution is why AMC, for now, and maybe for the foreseeable future, is still in business, even as its stock is battered and bruised.

Some of the Apes are still HODL (holding on for dear life, in the lingua franca of the cult), and still attacking those they see as backing the evil hedge funds. Thats scary.

Even more scary: Far too many reporters over the past three years sought the cults approval because it feels good to be applauded on social media. It also helps you build your followers, which is also idiotically important to reporters these days.

They are truly sellouts to the profession, because they should know, based on the history, cults never end well.

Business

State pension likely to rise by 4.7% after latest figures

Published

2 hours ago

September 16, 2025

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State pension likely to rise by 4.7% after latest figures

The state pension is likely to rise by 4.7% in April, after the latest official figures showed this was the pace of wage growth.

The pension is determined by the triple lock, which means it will rise every year by whichever is highest: inflation in September, average weekly earnings from May to July or 2.5%.

Inflation in September is expected to be 4% by the Bank of England, meaning wage data, released by the Office for National Statistics (ONS) on Tuesday, is set to be the highest figure.

Government retains control of pension increases and, despite commitments, could decide not to abide by the triple lock.

The new pension sum will start being paid in April, and if increased by 4.7% would reach £12,534.60, above £12,000 for the first time.

A political challenge

Despite the significant cost implications for the state, Work and Pensions Secretary Pat McFadden said the government was committed to the triple lock.

“The OBR estimates that will mean a rise in the state pension of around £1,900 a year over the course of the Parliament… that’s something that we said we will do in the election and something that we will keep to.”

It’s likely to be a headache for Chancellor Rachel Reeves as she struggles to stick within her self-imposed fiscal rules to reduce government debt and balance the budget.

While the average weekly earnings measure of wage growth rose, up from 4.5% a month earlier, another form slowed. Earnings excluding bonuses dropped from 5% to 4.8% across the month.

It means pay is still rising faster than inflation, which was 3.8% at the latest reading, and wage growth is high by historical standards.

A tough job market

The data was not so positive for those looking for a job. There are fewer vacant roles and fewer people on payrolls, the ONS said.

Compared to a year earlier, there were 127,000 fewer payrolled employees in August, provisional estimates show.

There were estimated to be 10,000 fewer vacancies from June to August 2025, marking the 38th consecutive period of vacancy drops.

The drops have decreased from previous months, suggesting the worst of the industry reaction to increased employers’ national insurance contributions and minimum wage rises.

Vacancies decreased in nine of the 18 industry sectors. Statistics also released on Tuesday showed a record 2.07 million people are working for the NHS.

The unemployment rate, however, remained at 4.7%.

The ONS continued to advise caution when interpreting changes in the monthly unemployment rate due to concerns over the figures’ reliability. The exact number of unemployed people is unknown, due to low survey response rates.

Business

Free tool that will change how you shop on Amazon forever | Sign up to Money newsletter

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2 hours ago

September 16, 2025

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UK

Google makes £5bn pledge to Britain – but concerns raised over mooted UK-US tech deal

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2 hours ago

September 16, 2025

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Google makes £5bn pledge to Britain - but concerns raised over mooted UK-US tech deal

Google is set to invest £5bn in the UK in the next two years, to support growing demands for AI services.

The announcement, which comes as Google opens a new data centre in Waltham Cross in Hertfordshire, is expected to contribute to the creation of thousands of jobs, the US tech giant said.

Chancellor Rachel Reeves described it as a “vote of confidence” in the UK economy.

The news comes hours before Donald Trump lands in the UK for a state visit at which he and Sir Keir Starmer are widely expected to sign a new UK-US tech deal.

It also follows reports that ChatGPT parent firm OpenAI, and Nvidia, will also unveil billions of dollars’ worth of investment into UK data centres this week.

The chancellor said the investment would boost research and development, capital expenditure and engineering.

However, Liberal Democrat leader Sir Ed Davey has criticised the proposed deal as a “Silicon Valley stitch-up”, and has demanded that the government put it to a vote in parliament.

He said: “I am really concerned the government is going to agree to a Silicon Valley stitch-up that hands tax cuts to tech billionaires while undermining protections for our children online.”

Sir Ed added: “Parents want protections for children online to be kept in place, not traded away in a backroom deal with tech barons.

“We can’t let the government sign up to a deal that benefits Elon Musk at the expense of the British people.”

Google has confirmed it will invest £5bn into capital expenditure, research and development, and related engineering over the next two years, which will include “pioneering” AI research in science and healthcare through its DeepMind operation.

The Silicon Valley firm said the investment will help the UK grow its AI economy and contribute to technological breakthroughs, improvements in cybersecurity and job creation.

Google predicted the investment will help to create 8,250 jobs annually at UK businesses.

DeepMind co-founder and chief executive Demis Hassabis said: “We founded DeepMind in London because we knew the UK had the potential and talent to be a global hub for pioneering AI.

“The UK has a rich history of being at the forefront of technology – from Lovelace to Babbage to Turing – so it’s fitting that we’re continuing that legacy by investing in the next wave of innovation and scientific discovery in the UK.”