|

AMC Stock Price: AMC Entertainment Holdings Inc continues to plummet as Reddit meme stocks sell off

  • NYSE:AMC sheds a further 9.38% despite the S&P 500 hitting new highs as it continues to roll.
  • AMC reports a 92% year-over-year drop in cinema attendance in Q4 of 2020. 
  • Companies like Disney are skipping movie theaters and going straight to streaming platforms. 

NYSE:AMC has unfortunately been stuck playing reruns for investors as the stock has continued to plunge following the Reddit short squeeze a couple of weeks ago. On Monday, the beleaguered theater chain dropped another 9.38% to close the first trading session of the week at $6.18, which means shares have now fallen nearly 70% off of their recent high of $20.36. While it was reported that AMC has avoided bankruptcy with the recent price surge, it seems as though retail investors are quickly abandoning ship as the Reddit movement loses momentum. 

AMC has also reported several disparaging figures including a 92% year-over-year fall in ticket sales in the fourth quarter of 2020. This should not really come as a surprise as the COVID-19 pandemic continues to keep people in their homes, but what people may not know is that AMC has 75% of its theater locations fully open. Even given the opportunity to attend, people are opting out of going to the movies, which of course does not bode well for a post-pandemic world. 

AMC stock forecast

AMC stock price chart

But depressed ticket sales are not the only issue threatening AMC, as studios such as Disney (NYSE:DIS) are skipping theater releases altogether. Instead, Disney is utilizing its Disney+ streaming platform for its 2020 releases Mulan and Soul, as well as its upcoming Marvel series the Falcon and the Winter Soldier. With no real end to the pandemic in sight, it could be a lot more pain in the short-term for AMC who may need further assistance to stave off bankruptcy again down the road. 

Author

More from Stocks Reporter
Share:

Editor's Picks

AUD/USD bounces off multi-month low, nears 0.6900

AUD/USD edges higher toward 0.6900 in the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have almost confirmed another December rate hike, which favors USD bulls and should cap the Aussie.

USD/JPY remains capped below 159.00 amid looming intervention risks

USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. That keeps the pair's upside limited below 159.00, for now.

Gold sticks to gains near $4,050 amid steeper Fed rate hike bets

Gold clings to recovery gains near $4,050 in the European session on Wednesday. However, upside seems limited amid sustained US Dollar demand. Tuesday's hot US inflation figures fuel expectations of a more aggressive policy tightening by the US Federal Reserve (Fed). This helps the Greenback preserve recent strong gains, despite hopes for US-Iran diplomacy.

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin remains in a capped tone, trading around $73,800 after slipping to a low of $72,727 following the previous day’s hot US inflation figures. Institutional demand continues to weaken, with BTC spot Exchange Traded Funds recording a $95 million outflow on Tuesday, marking the fourth straight day of withdrawals. Traders should be cautious as a K33 Research report highlights that BTC is at risk of sharp moves as leverage builds in derivatives markets.

Hot CPI helps cement December Fed hike as Nvidia slumps
October CPI inflation landed yesterday and beat expectations across the board. Note that we only received the MM figures because of last year’s government shutdown. Headline MM came in at 0.4%, beating the 0.3% forecast, though below September's 0.6%. Core MM also came in at 0.3%, slightly higher than the 0.2% estimate and matching the prior month’s reading.
What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.