Five Reasons Why You Should Hodl AMC Over Gamestop

Meme stocks have become a thing over the past year. With the uprising of WallStreetBets from Reddit came "Diamond Hands" and going "TO THE MOON!" That has also brought forgotten companies such as Gamestop, AMC, and Blackberry back in the spotlight. But there's one meme stock that you should "HODL" to grow your fortune. Here are five reasons why AMC is the superior meme stock to Gamestop.

  1. It's Cheaper: Warren Buffett makes it a point to invest in value stocks, i.e. stocks that are cheap. That includes stocks such as Verizon, Bank of America, and Coca-Cola, all of which sit under $60. AMC is no exception to this, with its price sitting at $35.15 after today compared to Gamestop's tag of $181.50. If you want to get into the meme stock game, but are short on cash, the Kansas-based company is the way to go.

  2. It Has A Better Market Cap: With that value also comes a surprising market cap. AMC's cap sits at 18.08 billion compared to Gamestop's 13.99 billion. The movie theater's stocks are worth much more than people realize, making it a good get for value seekers.

  3. AMC Caters to Its Investors: If you're an investor looking to grab popcorn and see a movie, AMC has you covered. The meme stock offers various perks such as one free large popcorn and access to special screenings. Everyone loves a good perk and that's what the midwestern company offers.

  4. It Has A Better Revenue Trend: Looking at AMC's revenue trend from the beginning of 2015 to the beginning of 2020, their revenue soared at 103%. Compare that to Gamestop, whose revenue dropped by 21.1%. It's easy to see who was getting closer to the moon before the pandemic hit.

  5. It Has Better Short Interest: From that same report, AMC also has better short interest than Gamestop. They currently have a short percent of float of 17.4% compared to the video game retailer's float of 12.2%. The Kansas-based movie theater company also has risen by 133.5% compared to Gamestop dropping 89%. If you're looking for a stock with better short squeeze potential, go with AMC.