AMC Stock Price: AMC Entertainment dips lower after previous day rally of 12%

NYSE:AMC didn’t see its rally last for long as Friday saw a return to its losing ways. Shares of AMC fell by 0.11% and closed the trading week at $17.66. It was a one-day rally as of now for AMC and other meme stocks that saw the movie theater chain jump higher by over 12% during Thursday’s session. AMC’s decline came despite the broader markets rallying higher for the second straight day following Russia initiating attacks on Ukraine. The S&P 500 and NASDAQ both jumped higher by 2.24% and 1.64% respectively, while the Dow Jone had a record setting day, adding 834 basis points for its best showing since November of 2020.

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Thursday’s rally for meme stocks could have been a celebratory one for Apes around the world. It was reported that Citadel, the main antagonist in the meme stock story, was pulling its $2 billion investment from hedge fund Melvin Capital. If you recall, Melvin Capital was the hedge fund that nearly went bankrupt following the initial short squeeze of AMC and GameStop (NYSE:GME) in January of 2021. With Citadel pulling its investment from Melvin Capital, it seems as though Reddit Apes were treating this as a retail victory.

AMC stock forecast

On Friday, the SEC released a couple of proposals that would help to crackdown on short sellers. The new regulation would allow public visibility of institutional investors with a short position of more than $10 million in a given security. These regulations come as a direct result of last year’s meme stock short squeeze, and should help to even the playing field for retail traders.

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