- NYSE:AMC fell by 1.3% during Wednesday’s trading session.
- Meme stocks suffer as volatility on Wall Street hits all sectors.
- AMC is looking to avoid following in the footsteps of Cineworld’s bankruptcy.
AMC Entertainment (AMC) saw its recent slide extend to three days as the Fed’s latest rate hike took the markets for a wild ride on Wednesday. Shares of AMC fell by a further 1.3% and closed the trading session at a price of $8.60. It was a volatile day of trading as investors lay in wait for Fed Chairman Powell’s September rate hike. As expected, it came in at 75 basis points, with the ultimate goal of a 4.6% terminal rate next year. Overall, the Dow Jones lost a further 522 basis points, while the S&P 500 and the NASDAQ fell by 1.7% and 1.8%, respectively, during the session.
Meme stocks struggled yet again as most of the usual suspects were trading well below water during Wednesday’s volatile session. Along with AMC, the company’s APE preferred units receded by 5.9% and hit a new all-time low price during intraday trading. Shares of GameStop (NYSE:GME) and Bed Bath & Beyond (NASDAQ:BBBY) slipped lower by 2.5% and 4.3%, respectively, as well.
AMC/APE preferred stock price
The main question on the minds of Apes these days is if AMC can continue to stay in business as the stock price is propped up by retail traders. The bankruptcy announcement from the world’s second largest movie theater company Cineworld Group (LON:CINE) was certainly not promising for the long-term survival of AMC. After a slow summer season, AMC will need a strong holiday season from movie goers to offset what has already been a weak year for cinemas.
AMC 5-minute chart
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