AMC hits another record low close, reflecting demise of meme stock status

On the other hand, low-quality names appear to already have begun suffering. “Under the hood, there are cracks emerging,” wrote analyst Max Kettner. “While it may be tempting to chase the latest all-time highs, we maintain our view of a Reverse Goldilocks episode hitting virtually all asset classes in the coming months.”

  1. AMC Entertainment shares plummeted more than 20% on Tuesday, slipping to a new 52-week low of $2.46 per share, as investors brace for a stock conversion later this week.
  2. According to Yahoo Finance, analysts on consensus expected a net loss of 27 cents and $1.23 billion in sales.
  3. These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock after investors who feared dilution rejected the company’s efforts to issue additional stock last year.
  4. Once a strong chart pattern has been established, an IBD-targeting breakout offers traders the best opportunity to reap gains at the start of a potential big run.
  5. Don’t miss real-time alerts on your stocks – join Benzinga Pro for free!

AMC Chief Executive Adam Aron described the recent slide in the company’s shares as “painful” and pointed to the lingering impact of the COVID-19 pandemic on the movie-theater industry. As evidence, Kettner pointed to “shakier” activity in markets beyond the U.S. large-cap names driven by the AI frenzy. Small- and micro-caps, high-beta and meme stocks are all down this year, alongside European equities.

Stock Action In 2021 Vs. 2022

Try the tool that will help you invest smarter, faster, and better. AMC and Zoom currently anticipate launching Zoom Rooms at AMC in up to 17 major U.S. markets sometime in 2023. The new partnership will turn some AMC locations in the United States into Zoom Rooms. The rooms will enable companies to bring people from different markets together at the same time for cohesive virtual and in-person events and meeting experiences. Sign-up to receive the latest news and ratings for AMC Entertainment and its competitors with MarketBeat’s FREE daily newsletter. AMC saw out Q1 with $813 million of cash in the coffers and through a new ATM equity issuance program, has since raised more than $170 million.

AMC Entertainment Holdings Inc. Cl A stock underperforms Tuesday when compared to competitors

Archer-Daniels-Midland is on pace for its second worst day in its history going back to 1972. The food processer stock plunged 19.2% during midday trading, or its biggest slide since Oct. 19, 1987 when the stock lost 19.89%. Oil prices rose more than $1 on Monday, after a suspected Ukrainian drone strike on a major Russian fuel terminal placed renewed focus on the threat to crude supplies. “We think large-cap ‘sell-the-news’ remains in effect,” he wrote in a Monday note to clients. Regardless, corporate earnings will ramp up this week with results expected from AT&T, D.R. Horton, Halliburton, Procter & Gamble, Southwest Airlines, American Airlines and American Express, among others. “The broader market looks more prone to consolidating its gains from November and December rather than rallying to new highs,” Ma said.

The movie-theater chain is riding high on volatility with shares looking to open Tuesday lower by 10%. The movie-theater chain diluted its shares big time, but more pain might be coming – 390mn shares were authorized for a sale. AMC Entertainment’s stock was trading at $6.12 at the beginning of the year. Since then, AMC shares have decreased by 33.5% and is now trading at $4.07. The addition of snacks and drinks to the offering was a major boost to revenue.

The number of shares owned by shareholders was adjusted after the market closes on Wednesday, August 23rd 2023. An investor that had 100 shares of stock prior to the reverse split would have 10 shares after the split. As AMC has just about stayed afloat during the pandemic, much has been made of the disconnect between the reality and the elevated share price. However, with Covid-19 on the backfoot, in the West at least, vaccines getting doled out across the globe, and AMC’s domestic theaters now open, there is the prospect of a movie theater renaissance. One of 2021’s unexpected trends has involved retail investors propping up stocks lacking in the fundamentals department.

Dow Futures

Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. It’s typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio.

At this point, AMC will definitely need weeks, if not months, to build a proper new base in bullish fashion. In August last year, AMC held a very respectable 96 Relative Strength Rating. This score means AMC stock had outperformed 96% of all stocks in the IBD database over the past 12 months. And the 3-month RS Rating at the time zoomed to a highest possible 99, according to MarketSmith data.

Financial Calendars

Boosted by the WallStreetBets crowd on Reddit, AMC used a steep rise in its share price to tap into equity and debt markets, raising $917 million in January 2021. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. If a stock’s Q1 estimate revision decreases leading up to its earnings release, that’s usually a negative sign, whereas an increase is typically a positive sign.

“AMC is still here, still innovating, still blazing new trails,” he wrote. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. The company missed the mark with its guidance trade all crypto — and its latest numbers signaled China pressures. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Parkev Tatevosian owns shares of Uber Technologies and Walt Disney.

News and Social Media Coverage

When IBD notes the market in a confirmed uptrend, it signifies that buying demand is healthy among institutional investors. To get this ideal entry in a cup without handle, simply take the cup’s left-side high. Still, with gains of as much as 501% in just two weeks, it made sense to lock in at least partial profits.

The VGM Score are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock.

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