NYSE:AMC shares fall over 40 % on Tuesday
AMC closed at $7.82 from a high of $19.90 on Jan 27.
AMC suffers after the /wallstreetbets rally ends.
Update February 3: Shares in AMC collapsed on Tuesday as the Gamestop rally came to a shuddering halt. All of the names in the recent Reddit rally collpased as shorts returned to the market and retail buying was still curtailed at certain brokers. AMC shares are currently trading $7.46, down 5% in Wednesdays pre-market.
See also: GME collapses as short interest drops
Update: Shares of recently favoured retail stocks such as AMC continued to suffer heavy losses on Tuesday. S3 partners reported that the short interest in GameStop (GME) had dramitically fallen to 53%. The short interest in GME has halved and the cost of borrowing shares has also fallen sharply. AMC shares are currently trading $9.68.
NYSE:AMC is at the epicenter of the ongoing feud between Reddit subgroup r/WallStreetBets and big hedge fund managers on Wall Street, and it is reaping the rewards. On Friday, as brokerage account restrictions were somewhat lifted, AMC’s stock skyrocketed by 53.65% to close the historic trading week at $13.26. This is following a 30% drop on Thursday as Robinhood and other brokerages halted trading of the r/WallStreetBets stocks of choice. The recent movement has vaulted AMC to 52-week highs of $20.36 on Wednesday, and insiders are predicting a further surge next week as well.
Speaking of Robinhood, the controversial investing app added AMC to its long list of banned stocks to trade on Friday, as it attempts to remain solvent during this tumultuous time. On Friday, AMC had an incredibly high trading volume as it breached the 587 million shares traded level, which is more than seven times the average daily trading volume of 83 million shares, which is already inflated. There is also a report that Silver Lake Partners, AMC’s largest investor, sold its entire stake at the high point of nearly $20 per share, which brought in $600 million to the private equity firm.
AMC stock forecast
Monday will bring another chapter in this ongoing feud between David and Goliath of the financial world. AMC still has nearly 45 million shares shorted, so if the momentum continues next week, some experts are saying that AMC could see a massive surge. The centerpiece of r/WallStreetBets continues to be GameStop (NYSE:GME) though, as the brick and mortar video game retailer rebounded to $325 on Friday, with further movement expected at the opening bell on Monday.
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