AMC’s stock was down more than 50% on Thursday afternoon, one day after it surged more than 300% and skyrocketed to $20.31 per share. The company had not seen such levels of optimism in over a year, particularly because the pandemic has devastated the theater business and it’s still unclear when the public will feel comfortable returning to the movies.
‘There were a lot of people betting against the company being successful,” Wold says. “AMC was the only exhibitor at risk of potential bankruptcy. They had too much debt on the balance sheet. Wold argues the long term concerns are different for AMC Theatres, which hope to see a rebound once the general public re-familiarizes themselves with moviegoing, compared to GameStop, which has seen its irrelevance grow with the rise of online gaming. There’s still uncertainty with AMC, to be sure, but analysts are hopeful that cinema chains will be able to recover in the back half of 2021. However, it may be another few years before the movie theater business returns to pre-pandemic levels.
“The prices are clearly going to deflate. But this may be a breath of fresh air for some of these companies that were laboring under excessively low valuations,” Mitts says. “The folks arguing that short-sellers pushed the prices too far down – that may be right, it might be wrong, but if there’s some truth to that maybe it’s a $20 stock instead of a $5 stock.”
That said, regulators “shouldn’t be paternalistically in telling people when they can trade and cannot trade,” he added. “I’m not a fan of trading halts or Robinhood telling traders they can’t trade GameStop or AMC. People came in expecting they could buy or sell and not expecting the broker to tell them they can’t.”
Though short squeezing is not an uncommon practice, Wold says investors have never seen such a concerted move from message board style groups. “It’s easy for them to change targets.” In the meantime, the app Robinhood restricted users ability to buy stocks for GameStop, AMC Entertainment and other companies that have seen a surge driven by online communities in an attempt to “limit the volatility,” he adds.
LOL can't go up if longs are only allowed to sell.
Buy AMC!!!
AMC shares crashed up to 64.1% today down from $19.90 to $7.13 and will be back to levels they were last week as they might have been able to borrow an additional $917m now have debts of $6bn+ and these new loans need to be repaid by 2024
This is a bullshit title. Hedge funds assholes can buy and sell while regular investors are locked out. The whole thing is rigged. Whole market is a scam
Spread the word, you can now buy AMC through Webull
The moon. amc
Let the suckers and vultures that play with monetary shuffle rape themselves.
Robinhood and all the other retail brokers that blocked people from buying can go fuck themselves.
Terrible headline
Why is the headline not, ‘what’s next for stocks roiled by Hedge Funds’?
Don’t sell!!!
100% False....plummeted due to trading platforms halting the ability to buy for no reason. Could still sell.
Buy AMC stocks! Hedge funds have been taking advantage of people for years, let them have a taste of their own medicine!
BS don't blame reddit blame thw hedge fund companies
Are you SERIOUS? Market manipulation by Wall Street
I think you mean roiled by hedge funds and the brokerages that answer to them
It only plunged because trading apps blocked their users from being able to buy it. Total horse shit!!
reddits trying to save this company and RH is trying to kill it. Not sure I'd make my headline that Reddit is the only one doing the roiling here...