- NYSE:AMC added 1.07% on Tuesday as the stock continues to regain any momentum.
- The brief meme stock Reddit rebellion seems a distant memory now as markets return to normal.
- Fellow meme stock GameStop prepares for a congressional hearing and investigation.
NYSE:AMC has seemingly returned back to obscurity after the much-publicized Reddit meme battle with Wall Street hedge fund managers. Tuesday saw the stock add 1.07% as the price has settled back down to $5.65, a far cry from the 52-week high of $20.36 that AMC saw during the short squeeze. The world’s largest movie theater chain will report its quarterly earnings report at the end of February, and it should be an interesting investor call to say the least.
It seems like months ago now that the Reddit subgroup r/WallStreetBets took the stock market by storm, but aside from a few days of big gains, AMC has fallen back down to Earth in a big way. Perhaps the worst part of the whole debacle is the legion of retail investors that are stuck holding the bag, having bought into the meme stocks at unreasonably high valuations. While AMC projects that its theaters should draw-in moviegoers once the COVID-19 pandemic has ended, companies like Roku (NASDAQ:ROKU), Disney (NYSE:DIS), and Netflix (NASDAQ:NFLX) have all been finding ways to bypass theaters completely with their content.
AMC stock news
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It’s hard to find a bullish case right now for AMC, but perhaps the Reddit saga ultimately accomplished what it was meant to do: save AMC from bankruptcy. CEO Adam Aron has stated that any “imminent bankruptcy is off the table”, but investors have to wonder if we will be revisiting that discussion, the longer the COVID-19 pandemic lingers. Fellow meme stock GameStop (NYSE:GME) is at the center of a congressional hearing on the regulations of the capital markets. Suffice to say, it should be interesting to hear what information comes of these hearings.
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