- NYSE:AMC needs to regain its retail support or the stock could plummet.
- Renowned investor Michael Burry says meme stocks are officially a bubble.
- More analysts are refusing to provide coverage of meme stocks on Wall Street.
NYSE:AMC is relying on a strong return to movie theaters now that the worst of the COVID-19 pandemic in the U.S. is behind us. July 4th weekend theater revenues topped $69 million in the U.S. alone, and while that is an impressive year over year improvement over 2020, it is a fraction of the weekend’s historical revenue numbers. In the past the Independence day long weekend has been home to some of the largest movie launches of the summer with typical weekend revenues of between $150 and $200 million through ticket sales. This shows that although the world is opening back up, movie theaters may not be at the top of people’s to-do lists following the pandemic.
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The investor who was made famous in the film the Big Short has indicated that he now believes that meme stocks are officially in a bubble. Michael Burry has openly stated that the current meme stock environment reminds him of the housing market crash that made him famous, as well as the dotcom crash back in 2000. Burry also went on to say that the companies that do become meme stocks need to take advantage of the benefits that come with a sudden surge in stock price.
AMC stock forecast
Official AMC stock analyst forecasts may be more difficult to come by in the future, as several analysts have already refused to cover meme stocks moving forward. Most recently, Loop Capital’s Anthony Chukumba has stated he will no longer be covering GameStop (NYSE:GME), as he stated, "look the stock is down from $483 to I guess $200. I still don't think it's worth anything even remotely close to that." Chukumba’s refusal to cover GameStop comes on the heels of both Baird and Bank of America terminating coverage of the meme stock as well.
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