AMC Stock Forecast: AMC Entertainment Holdings Inc plunges 5% to surrender $10 mark

Update:  AMC Entertainment Holdings Inc (NYSE: AMC) shares snapped their recovery above the $10 mark on Tuesday, as they sank in tandem with a global sell-off fuelled by hotter US inflation data. An upside surprise to the monthly Core CPI combined with upbeat headline inflation from the US cemented a 75 bps Fed rate hike for next week, sending major Wall Street indices deep in the red. Earlier in Tuesday’s trading, AMC stock price was trending higher on increased investors' interest. In the wake of the sell-off, AMC stock price eroded 4.89% on the day and surrendered the $10 level to settle at $9.72 per share.

NYSE:AMC extended its streak to four consecutive positive sessions as the meme stock climbed back above the $10.00 price level. On Monday, shares of AMC gained a further 5.14% and closed the trading session at a price of $10.22. Stocks also extended their rally from last week as all three major indices closed higher. The rally comes ahead of the key August CPI report that is set to be released on Tuesday. Overall, the Dow Jones gained 229 basis points, the S&P 500 added 1.06%, and the NASDAQ rose higher by 1.27% during the session.

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AMC and Walt Disney (NYSE:DIS) extended their partnership as announced by AMC CEO Adam Aron via Twitter on Monday. Disney+ subscribers will now get access to exclusive screenings at AMC theaters as a paper of their monthly subscription fee. The move is a good one for AMC which allows users back into the theater environment while also capitalizing on refreshments which are a high margin revenue for the company. It’s not the first time the two companies have worked together like this. As recently as the end of August, AMC held the Disney+ Day which screened familiar Disney films at a discounted ticket price.

AMC APE preferred stock price

British Cinema operator Regal Cinemas which is owned by Cineworld Group plc (LON:CINE), has officially announced it is filing for bankruptcy. The move was very much anticipated for the company and shares fell a further 24% on Monday and is now down by 91% for the year. AMC has reiterated that it is not close to filing for bankruptcy, especially after investors helped to raise $1 billion cash last year and even more this year after the debut of the APE (NYSE:APE) preferred shares.

Previous updates

Update:  AMC Entertainment Holdings Inc (NYSE: AMC) shares were trading higher again on Tuesday amid continued retail investor interest with such platforms as Reddit's r/wallstreetbets taking up the potential of a short squeeze. This follows the fundamental news that the world's second-largest movie theatre chain Cineworld Group filed for bankruptcy. Meanwhile, from a technical standpoint, the price has corrected over a 23.6% Fibonacci retracement and would be expected to continue correcting to at least the structure mark near to the 38.2% ratio around $11.33 in the coming days. 

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