NYSE:AMC dropped by 8.49% on Tuesday amidst a broader market pullback.
AMC apes continue to believe in an upcoming short squeeze.
Meme stocks struggle on Tuesday after a bullish start to the week.
NYSE:AMC fell back through its support levels after previously breaking through its previous resistance during Monday’s surge. On Tuesday, shares of AMC fell by 8.49% to close the volatile trading session at $47.30. AMC erased all of its gains from Monday and then some, as September OPEX week continues to cause volatility for the broader markets. The Dow Jones tumbled by 292 basis points, while the S&P 500 and NASDAQ both recorded losses as well. The Russell 2000, of which AMC is a component of, also fell again on Tuesday, and is lagging the S&P 500 so far this year.
Despite the movie theater industry on a downward trend for the past few years, AMC apes still fully believe in the future of the company. Other factors that investors need to take into account is the financial stability of AMC, as well as the massive shareholder dilution that has taken place over the past year. Still, it seems that these days most investors are just focussed on the percentage of the outstanding shares that are shorted, in order to bring on another short squeeze.
As bullish as Monday was for meme stocks, Tuesday was a completely different story. AMC and Vinco Ventures (NASDAQ:BBIG) both fell big as the latter dropped by 17.10% during the session. GameStop (NYSE:GME) also fell by 1.97%, SunDial Growers (NASDAQ:SNDL) dropped by 4.22%, and SmileDirectClub (NASDAQ:SDC) sank by 3.68%. The stocks all fell on basically no real news, but increased volatility comes with the territory, particularly on a day where the broader markets are pulling back.