AMC Entertainment Stock Price swings below $10 as virus cases outweigh cause fears


  • NYSE:AMC falls nearly 2% in early trade on Wednesday.
  • AMC faces chart resistance from converging moving averages.
  • Meme stocks suffer on Wednesday despite indices being green.

Update April 2: AMC Entertainment Holdings Inc (NYSE: AMC) has kicked off Thursday's trading session with a significant drop below $10. At the time of writing, shares of the movie theater firm are down some 4.5% to $9.75. This decline contrasts the bullish market mood. However, while America's vaccination campaign continues, so do increases in cases. That implies fewer people going to see films. 

NYSE:AMC investors thought that the stock’s price would be heading back to the moon after nearly every state-issued reopening orders for its theaters. But shares have seen continued volatility as it becomes increasingly clear that returning to watch movies is not at the top of everyone’s post-COVID list of things to do. On Friday, despite a broader market rally to the closing bell, AMC fell by 6.40% to close the trading week at $10.24. AMC is now down nearly 30% since last week when shares surged on the news of states like California reopening its doors. 


Stay up to speed with hot stocks' news!


Despite the fact that nearly all of AMC’s locations are once again open to the public, albeit in limited capacities, some film companies are hesitant to return to how things were. Earlier in the week, Walt Disney (NYSE:DIS) reported that it would be delaying the much anticipated release of its upcoming film Black Widow, and preparing it for a simultaneous launch on its streaming platform Disney+. These multi-platform releases are devastating for theaters like AMC as staying at home to watch movies is not only safer, but for families with children, is easier on the wallet as well.

AMC Stock forecast

The king of the meme stocks, GameStop (NYSE:GME) had another tumultuous week following its March 23rd earnings call where a corporate reshuffling was announced. GameStop’s behavior always sends ripple effects to the other meme stocks like AMC, so this week’s volatility should come as no surprise. Although the Reddit effect and Wall Street short squeeze is losing its momentum, there are still a large legion of Reddit investors who are heavily invested in GameStop and AMC, months after the initial event.

Previous updates

Update April 1: AMC Entertainment Holdings Inc (NYSE: AMC) has closed Wednesday's session with a drop of 1.35% to close at $10.21. Those following shares of the movie theater firm closely may have become familiar with these ranges. Another minor slide to $10.16 is on the cards on Thursday. However, as a "meme stock" prone to enthusiasm on Reddit's WallStreetBets forum, trading may turn wild. It is also essential to remember that as the Easter holiday approaches, liquidity in markets is thinning out and that may cause volatility to surge.

Update 2 March 31: AMC is one of the few stocks in the red so far on Wednesday as shares also struggle with resistance. The 9 day moving average provides the first resistance to be tackled at $10.88 and next $10.96 is the 21 day moving average. The 9 day is close to breaking below the 21 day moving average which is a bearish signal.

AMC

Update March 31: AMC Entertainment Holdings Inc (NYSE: AMC) has ended Tuesday's session at $10.35, unchanged from Monday as investors await President Joe Biden's infrastructure spending plan. For the firm's cinema business, the rapid pace of US vaccinations is encouraging, but the recent surge in virus cases is worrying. That may explain the recent stability. Wednesday's session could be different – end-of-quarter flows are set to cause high volatility in markets.

Update March 30: AMC Entertainment Holdings Inc (NYSE: AMC) has kicked off Tuesday's trading session with a swing to the downside. While prospects of vaccination and reopening remain elevated, stock markets fear inflation and are heading lower. Concerns that President Joe Biden's infrastructure plan would trigger substantial debt issuance is causing a sell-off in US bonds. In turn, higher returns on Treasuries make shares less attractive. This broader narrative does not spare the movie theater behemoth. At the time of writing, AMC is changing hands at $10.20, paring Monday's gains with a slide of 1.50%.

Update March 30: AMC Entertainment Holdings Inc (NYSE: AMC) has closed Monday's trading session at $10.35, a gain of 1.37%. The upward move is set to extend, as pre-market figures point to another minor advance to $10.43. Investors have been shrugging off reports of significant sell-offs by insiders in the company. While that is usually seen as a sign of no-confidence, managers at the embattled movie theater firm may have taken advantage of recent gains related to retail traders to take money off the table. 

Update March 29: AMC Entertainment Holds Inc (NYSE: AMC has kicked off the short trading week with an upward swing, changing hands at around $10.30 at the time of writing. The embattled theater company is considered a "meme stock" alongside GameStop and others – known for its wild swings related to retail traders. However, the big boys also cause volatility in markets. The liquidation of Archegos, a hedge fund, has triggered a sell-off in CBS Viacom and other shares. Moreover, several commercial banks are suffering significant losses due to their exposure to Archegos – showing that the big boys have their own issues.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.

EUR/USD News

GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 

GBP/USD News

EUR/USD Weekly Forecast: Fed may fuel the next leg of rally, bulls eye 1.2240

EUR/USD has been extending its gains amid dovish Fed policy and the eurozone's vaccination drive.   Eurozone PMIs and Fed meeting minutes are set to move the currency pair. Mid-May's daily chart is pointing to further gains.The FX Poll is showing mild downside pressure. 

Read full analysis

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more

Forex MAJORS

Cryptocurrencies

Signatures