AMC Stock: What Reddit Investors Are Saying as Shares Climb Today

Meme stock movie theater company AMC Entertainment (NYSE:AMC) ended the day in the red Thursday despite a strong week for the volatile stock. AMC bulls on r/amcstock are out and about questioning the forces disrupting an otherwise bullish month for the company. AMC stock dropped nearly 2% on Thursday and is down 0.54% in after-hours trading.

So, what’s up with AMC lately?

Well, on Feb. 1, AMC released a preview of its Q4 preliminary results. The company reported total revenue of $1,171.6 million, triumphantly beating out Q4 2020 numbers. For the same period in 2020, AMC reported a dismal $162.5 million as the world was content to stream content at home. This has prompted a number of analysts to foresee AMC making a strong comeback. Indeed, from Feb. 7 to Feb. 10, AMC saw its share price increase from $14.91 to its Thursday peak of $20.27. However, the markets, likely in response to a troublesome consumer price index report, took a sharp downturn. AMC closed today at $18.59, down slightly on the day.

In the midst of AMC’s upturn, several fans of the meme stock took to Reddit to share their recent gains. On Wednesday, one Redditor excitedly posted about a recent purchase of AMC stock by investment giant, Vanguard Group. Vanguard increased its ownership of AMC from 7 million, to 47 million shares of the company, representing roughly 9% ownership and a 500% increase in shares. Unfortunately, all good things must come to an end, which is exactly what happened around mid-day today.

What else is going on with AMC stock Lately?

AMC Stock Dips Back Down Amid Mid-Day Pullback

Despite AMC’s bull run, greater economic concerns trumped the company’s momentum Thursday. After a startling Consumer Price Index (CPI) report, which highlighted a 7.5% increase in prices last month, a number of companies fell into the red. The S&P 500 dropped nearly 2% as AMC went from up on the day, to slightly below its opening price.

This comes in addition to a Thursday report from Insider Monkey, titled “Analysts Think These 10 Stocks are Overvalued.” Citing a scathing report by Bronte Capital, writer Hamna Asim listed AMC as one of the overvalued stocks. Bronte Capital dug into the troubled entertainment company, arguing the company is on a downward spiral despite recent optimism.

“Every year large screen televisions and home theater equipment become cheaper. Every year the attraction of the couch at home versus the multiplex improves. It looked — preCovid — to be a slow burn to bankruptcy … Post-Covid, AMC looks like a fast-track to bankruptcy even after it has raised over a billion dollars from mostly retail investors.”

It’s unclear exactly where AMC is headed, to the moon or to irrelevancy. Regardless, you can count on enthusiastic Redditors to maintain their ties to the theater company.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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