AMC Stock News: AMC Entertainment drops lower as meme sector continues to lose momentum

NYSE:AMC fell by 3.92% on Wednesday, despite climbing during the morning.
AMC saw some early buying action from the lawsuit against Robinhood and Citadel Securities.
AMC is desperately searching for support as it continues to bleed money.

Stocks Reporter FXStreet

NYSE:AMC hasn’t had much good news as of late, and that is clearly seen in the recent performance of the stock. On Wednesday, shares of AMC fell a further 3.92% to close the trading session at $35.54. The fall comes after an early morning surge that saw AMC shares trading nearly 3% higher after the markets opened. Sadly for shareholders, any early momentum was wiped out by the closing bell as the meme stock extended its losing streak to five straight sessions. AMC wasn’t the only meme stock to close lower as GameStop (NYSE:GME), Vinco Ventures (NASDAQ:BBIG), and ContextLogic (NASDAQ:WISH) were also in the red.

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The early push on Wednesday morning was believed to be excitement from retail investors in response to the lawsuit against Robinhood (NASDAQ:HOOD) and Citadel Securities. The lawsuit seemed to get under the skin of the two companies, as both Ken Griffin and Vlad Tenev responded to the allegations of collusion on social media. While it remains unclear if anything will actually come from the lawsuit, it is pretty obvious that AMC Apes still believe hedge funds are manipulating some of their favorite stocks.

AMC stock price forecast

While AMC’s stock continues to suffer, so too does the movie theater chain’s business operations. AMC is burning cash at a rapid pace and its recent quarter sales are down 70% from pre-pandemic levels. The company is having difficulties attracting customers back into theaters after so many of us became used to not going to these public places during the pandemic. Unless AMC can get customers back in seats, the business may be in grave danger of once again flirting with bankruptcy.

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Stocks Reporter

FXStreet

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