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NYSE: AMC dropped by 4.7% on Friday as meme stocks took a breather.
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AMC CEO Adam Aron reminds investors that further dilution is coming for AMC’s stock.
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Meme stocks fall ahead of a key day, according to WallStreetBets users.
Update: AMC missed out on inclusion into the Russell 1000 Index, while its meme rival Gamestop (GME) made the cut. However, both ended Friday in negative territory as the meme stocks took a well earned breather. AMC still remains elevated at $54.06.
NYSE:AMC is showing more signs that its recent short squeeze is cooling off, especially on Thursday when its daily trading volume was cut in half with only 79 million shares being traded. Shares of AMC fell by 2.7% to close the trading session at $56.70, which is still well above both its 50-day and 200-day moving averages. AMC has seen more red days than green as of late, although retail investors are insisting that they are holding strong, even as other meme stocks with high short interest continue to pop up.
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CEO Adam Aron was on the wrong end of a message that investors did not want to hear on Thursday. Aron had to remind investors that AMC would be raising more capital by further diluting its stock, a move that the company has already carried out numerous times. Incredibly, AMC now has over 500 million shares outstanding. For reference, GameStop has just over 70 million shares outstanding, which is more of a reasonable number of shares for a small to mid-cap company.
AMC stock forecast
On Friday, there is some expected higher volatility for the markets as GameStop is added to the Russell 1000 index, although AMC did not make the cut this time around. June 25 also marks a +T21 date for GameStop, which has recently been a date where the price spikes for the stock. The +T21 refers to days after settlement transactions, and the pattern has been quite predictable for GameStop. With all that is happening on Friday, GameStop, AMC and other meme stocks could see some higher volume and volatility than normal.
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