- NYSE:AMC fell by 3.65% to close a volatile week for meme stocks.
- AMC Redditors remain bullish but the stock continues to fall.
- Volatility should continue ahead of the August 5th shareholder’s call.
NYSE:AMC fell again on Friday, bringing its weekly losses to nearly 10% coming out of the July Fourth long weekend. Shares of AMC fell a further 3.65% to close the week at $46.19, barely staying above its 50-day moving average price of $46.09. The meme stock craze has died off recently, especially since GameStop (NYSE:GME) was added to the Russell 1000, which has provided less volatility for the stock.
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Even with the U.S. reopening from the COVID-19 pandemic, movie theaters have not quite met the same ticket sales revenue as previous summers so far. This could be an indication that the public is still hesitant about returning to activities like sitting in a theater, especially as streaming services provide more immediate access to new release movies. Don’t tell that to Reddit boards though as AMC Apes still remain bullish on the stock despite a noticeable drop off since early June. A quick scan of social media shows that diamond hands are still being touted, even though the stock continues to sell-off despite 80% of the shareholders being retail investors now.
AMC is set to have its annual shareholder’s call on August 5th, although CEO Adam Aron has already publicly dealt with one of the main concerns of shareholders. Aron released a statement on social media reassuring shareholders that further dilution of AMC shares would not be happening during 2021. Like with GameStop ahead of its call in June, investors should expect more volatility leading up to August 5th.
