Wedbush analyst Alicia Reese has maintained an Outperform rating on AMC Entertainment Hldgs and raised the price target to $4 from $3. The adjustment reflects a revised outlook on the company's stock performance.

Rating and Target Details

The rating affirmation and price target increase were issued by the analyst covering the NYSE-listed entity. The new target of $4 represents an increase over the previous $4 objective.

AMC Entertainment Holdings Inc. stock rose 7.49% to $2.01 on Tuesday as retail investors responded to critical comments made by CNBC's Jim Cramer, treating his negative assessment as a signal to buy. The price action reflects a long-running trading theory known as "Inverse Cramer," where traders bet against his on-air calls, citing past instances where his commentary preceded short-term price reversals. Despite the rally, the stock remains down 39.19% over the past 12 months, indicating it is still repairing longer-term damage.

Social Media Reaction Drives Buying

The buying frenzy was fueled by social media activity. An X account called DegenLife, which represents retail "apes" who hold AMC shares, posted a screenshot of Cramer's remarks with the caption "Something Big Is Coming." Additionally, a parody account referencing actor Ryan Reynolds wrote, "Thanks," Cramer "for the signal to buy buy buy more" AMC. AMC is widely considered one of the original and most prominent "meme stocks," a term for companies whose stock prices are driven by viral internet hype and retail investor speculation rather than underlying business fundamentals.

Cramer's Critique of Debt Levels

In a segment published on Monday, Cramer argued that AMC's turnaround narrative was undermined by its debt levels. "When the meme stock guys pushed AMC, the movie theater chain, as a turnaround play, I knew the stock would have a limited shelf life because the balance sheet was heinous," Cramer said. He added that the company "needed to borrow too much money to get back into growth mode." Cramer contrasted AMC with Amazon.com Inc. and Tesla Inc., noting those companies "borrowed vast sums of money when they were getting started" because "they both have massive opportunities in front of them." He said AMC, by comparison, was "borrowing money just to stay afloat."

Technical Analysis and Momentum

From a trend perspective, the intermediate setup has improved since the golden cross in July, when the 50-day SMA moved above the 200-day SMA. The stock is now trading 9.2% above its 50-day SMA and 9.5% above its 200-day SMA, which supports the idea that the bigger downtrend has at least paused. However, near-term resistance is present as the stock trades 4.4% below its 20-day SMA, which can cap price until buyers prove they can hold gains. Momentum is neutral, with the RSI sitting at 51.39, consistent with a rebound that is not yet overbought.