The stock of AMC Entertainment Holdings, Inc. (AMC) plunged in the current session after a blow by social media meme trend. The stock valued at $21.01 at last check. This is a gain of more than 9% from the previously closed value. At the end of the last trading session the stock closed at $23.24. The average value of the stock traded in the last trading session was around 39.45 million.
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Reasons of the stock decline:
The individual investors have gathered around the stock of AMC Entertainment Holdings, Inc. (AMC) and targeted it on the various social media platform. Due to which the stock lost more than 9% in its value. The individual investors targeted this stock after the CEO of the company announced that he is selling shares worth of around $10.2 million in total. Due to this transaction the stock of the company already had lost more than 7% in its value.
Another reason is the rising of the new corona virus variant known as Omicron. AMC is a giant movie-chain operator. The Omicron variant has seriously affected the flow of customers to the cinema houses due to which the sales of the company has seriously declined.
AMC have made a minority of investors to be optimistic about its stock and were motivated to buy it despite of its fall in the market. They are expecting the stock to rise in the future and could result them in a good capital gain.
Effect on the stock:
After this meme trend on Reddit and other social media platforms, the stock of the company was hit by a severe blow. But it is a temporary event and will settle within a few days. Such trends don’t affect the stock’s value in the long run.
Conclusion:
This has been a roller coaster ride for the AMC stock this year. The stock collapsed as well as gained value this year. It was not consistent. But despite of the current decline in its value, If we compare its current value with its price at the end of the last year then we can clearly see that the stock gained almost 10 times in value. The value of the stock could settle after the company announces its results for the next quarter.
