The new meme stock rally is unlikely to slow down, with GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings, Inc. (NYSE:AMC) poised for another strong session on Tuesday. CNBC's Mad Money host Jim Cramer took to social media to share his thoughts on the market frenzy.
Capitalizing On The Mania? Cramer believes both GameStop and AMC could use the stock surge to raise capital through public offerings. He commented on AMC, saying, "Waiting for AMC to issue stock to the throng," suggesting he doesn't see much value in such an offering for the company.
Waiting for AMC to issue stock to the throng. It makes too much sense not to
— Jim Cramer (@jimcramer) May 13, 2024
According to Cramer, AMC's best chance of survival lies with its meme stock buyers. He acknowledged the company's existing deals but questioned their long-term viability.
He expressed disbelief at the potential for a successful offering, stating, "Any CFO who knows what he or she is doing would be so grateful to the memesters so they could fix their balance sheets... It is such an amazing opportunity. No offense to the buyers but really??????"
The stock picker thinks an at-the-money sell program is likely from GameStop. "GME would be nuts NOT to authorize and at the money sell program to raise cash and reinvent," he added.
GME would be nuts NOT to authorize and at the money sell program to raise cash and reinvent
— Jim Cramer (@jimcramer) May 13, 2024
Cramer also pointed to the 24-hour trading window Robinhood Markets, Inc. (NASDAQ:HOOD) offers now. "Bless RobinHood for keeping the casino open at all hours for this massive game of chicken that the companies can't complain about and the SEC doesn't seem to care about. So game on," he said.
Tagging Barstool Sports founder David Portnoy, Cramer said, "Greater fool or greater genius; if you bought $GME or $AMC yesterday, congratulations!!"
Portnoy had previously posted that he tried buying $500,000 each of GameStop and AMC, but eventually could not.
Why It Matters: The meme stock rally reignited with the return of Keith Gill, known online as "Roaring Kitty," a key figure in the 2021 frenzy.
However, GameStop has struggled with stagnant revenue and gross profits for years. "It is true that if it could try to get in a giant offering here it could reinvent as something else but if it was any good Best Buy would have bought them ages ago," Cramer said.
AMC faces declining box office revenue, and GameStop has yet to successfully transition to digital sales. AMC recently issued new shares to raise capital, highlighting its financial struggles.
After settling up over 78% on Monday, AMC shares rocketed 78.42% to $9.26 in premarket trading on Tuesday, according to data from Benzinga Pro.
GameStop, which closed Monday up 74.40% at $30.45, rose over 92% to $58.34 before the opening bell.
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