AMC Entertainment (AMC), a struggling movie theater chain, saw its stock price more than double on Monday due to renewed interest in meme stocks. This surge coincided with the company completing a $250 million share sale, which provided much-needed capital.

AMC took advantage of the increased interest in meme stocks, driven by retail investor Keith Gill ("Roaring Kitty"), who previously supported GameStop (GME) and sparked the meme stock rally in 2021. His recent activity also led to a surge in AMC and GME stock prices, with both roughly doubling by Tuesday morning.

Despite the stock price surge, AMC's financial situation remains a concern. Revenue in Q1 2024 remained stagnant compared to the previous year, indicating a slow return of moviegoers. Though losses narrowed, analyst Alicia Reese of Wedbush pointed out AMC's significant $4.6 billion debt as a major obstacle.

Alicia Reese also sees potential for AMC's European circuit, with theater upgrades potentially boosting revenue. However, significant balance sheet restructuring is needed over the next two years before these opportunities can be fully realized.