- NYSE:AMC fell by 6.05% during Tuesday’s trading session.
- JPMorgan warns against the recent meme stock revival rally.
- AMC could be affected by a lackluster summer blockbuster season.
NYSE:AMC saw its six-day winning streak snapped as investors hit the brakes on the recent meme stock resurgence. On Tuesday, shares of AMC dropped lower by 6.05% and closed the trading session at $22.51. Stocks pulled back on Tuesday as all three major indices closed the day in the red. Continued weakness in semiconductor stocks as well as uncertainty ahead of Wednesday’s July CPI report had investors take pause. Overall, the Dow Jones fell by 58 basis points, the S&P 500 dropped by 0.42%, and the NASDAQ led the way lower posting a 1.19% loss for the session.
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A JPMorgan analyst warned about the recent revival in meme stocks. Monica DiCenso, the managing director of the Global Investment Opportunities Group, stated that low liquidity and low summer trading volume have artificially enhanced the latest meme stock rally. DiCenso advises investors to look at the business fundamentals for companies like AMC, Bed Bath and Beyond (NASDAQ:BBBY), and GameStop (NYSE:GME) before chasing the latest squeeze. All three stocks were trading lower on Tuesday after sustaining significant winning streaks over the past couple of weeks.
AMC stock forecast
AMC could be in for a struggle this summer as the slate of Hollywood blockbusters is uninspiring at best. The summer is one of the busiest seasons for movie goers and is traditionally one of AMC’s most profitable quarters. With just a few weeks until summer holidays end for students, theaters could see an extended slow season until the fall. Last weekend, domestic box offices had one of their slowest weekends since May of 2021.
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