AMC Share Price: Meme stock hits freefall as short squeeze continues to fade

NYSE:AMC dropped by 9.79% on Wednesday, as the meme stock slide continues.
AMC officially falls below its 50-day moving average in after hours trading.
AMC and GameStop could just be falling out of favor with younger investors.

Stocks Reporter FXStreet

NYSE:AMC is proving the old saying true: stocks take the stairs up but the elevator back down. While AMC’s rise may have been faster than most, the rapid descent hasn’t even given some investors time to take their profits. On Wednesday, AMC’s decline continued as the stock dropped by 9.79% to close the session at $45.07. It’s been a rough couple of weeks for meme stocks as the momentum from the short squeeze in early June has clearly tapered off, once again leaving many retail investors holding the bag after buying shares at a higher price.

Stay up to speed with hot stocks' news!

AMC saw some extended movement in after hours trading as the stock fell a further 2.64% at the time of this writing. This moves AMC below its 50-day moving average price of $44.14, which is a key level of support for stocks on a bearish downtrend. It will be interesting to see how AMC responds during Thursday’s session, but unless the stock finds support soon, AMC could be heading all the way back down. This would bring into question Tuesday’s decision by AMC CEO Adam Aron to not pursue a 25 million share stock sale at the higher price levels.

AMC stock forecast

The original meme stocks like AMC and GameStop (NYSE:GME) continue to fall out of favor with retail investors, as they look for other potential short squeeze stocks. Recently, companies like ContextLogic Inc. (NASDAQ:WISH) have found popularity amongst the Reddit crowd, although shares of Wish were also down sharply on Wednesday, falling by 7.91%. While they may all stress having diamond hands, the lower these stocks fall, the worse off these investors will be in the long-run.

Author

Stocks Reporter

FXStreet

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.