AMC - Big Fish in Small Pond!!
$AMC Entertainment (AMC.US)$
https://www.barrons.com/articles/gamestop-amc-russell-1000-51623883459
As GameStop becomes a small fish in a big pool, its influence on active managers will also diminish. “Large-cap managers don’t need to own the smaller names,” says DeSanctis, “While in Russell 2000, because it’s a bigger name, small-cap managers have to pay attention to the stock.” Historically, stocks that have moved from the Russell 2000 to Russell 1000 have tended to lag behind the small-cap index over the next year, he says.On the other hand, AMC will play a far bigger role in the Russell 2000. If its market cap remains at its current level around $28 billion, the stock will likely be the largest member of the Russell 2000 after the rebalancing. The next-largest name in the reconstituted index, likely Ovintiv (OVV), has a market capitalization of just $8.3 billion. “The definition of small has been skewed,” says DeSanctis.
https://www.barrons.com/articles/gamestop-amc-russell-1000-51623883459
As GameStop becomes a small fish in a big pool, its influence on active managers will also diminish. “Large-cap managers don’t need to own the smaller names,” says DeSanctis, “While in Russell 2000, because it’s a bigger name, small-cap managers have to pay attention to the stock.” Historically, stocks that have moved from the Russell 2000 to Russell 1000 have tended to lag behind the small-cap index over the next year, he says.On the other hand, AMC will play a far bigger role in the Russell 2000. If its market cap remains at its current level around $28 billion, the stock will likely be the largest member of the Russell 2000 after the rebalancing. The next-largest name in the reconstituted index, likely Ovintiv (OVV), has a market capitalization of just $8.3 billion. “The definition of small has been skewed,” says DeSanctis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
