- NYSE:AMC fell by 0.91% during Monday’s trading session.
- Meme stocks continue to sink amidst rising interest rates from the Fed.
- AMC CEO Adam Aron wants to reduce debt in 2022.
NYSE:AMC extended its recent slide on Monday as the meme stock has now dropped by nearly 15% over the past five trading sessions. To start the week, shares of AMC fell by 0.91% and closed the day at $22.78. While the day started off with all three major indices deep in the red, the markets managed to rebound by the closing bell. The NASDAQ even eked out a small gain after several days of being hammered last week. The Dow Jones lost 162 basis points and the S&P 500 edged lower as well, but for the most part it was an afternoon of recovery for the broader markets.
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Unfortunately in an environment where the Federal Reserve is expected to raise interest rates by March, meme stocks have been one of hardest-hit sectors. Alongside AMC’s losses on Monday was fellow legacy meme stock GameStop (NYSE:GME) which fell by 6.73% during the session after being down by as much as 14% during intraday trading. The video game retailer erased most of the gains made last week after announcing it would be launching an NFT exchange for gamers by the end of 2022.
AMC stock forecast
AMC CEO Adam Aron also kicked off 2022 by stating that one of the main goals of the company is to reduce its debt this year. The movie theater industry has been ravaged by the pandemic, and AMC has been forced to spend upwards of $100 millions each quarter just to remain open. Companies reducing debt is usually carried about by mechanisms like selling stock so it is clear why AMC apes are not too thrilled with the idea of further dilution.
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