AMC Stock Goes on a Wild Round Trip to Nowhere
A lot can happen pretty fast when you're following a meme stock. Remember Monday of last week? Shares of AMC Entertainment Holdings (NYSE: AMC) soared 45% in a single trading day. It was a glorious pop -- taking the stock from $20.24 to $29.33 -- but it lacked substance.
Box office receipts continue to clock in well below their pre-pandemic levels. Insiders keep selling into strength. Even if you believe in AMC's pivot from projector to prospector last month with its puzzling investment in a gold mining penny stock, that deal is not going to move the needle anytime soon at a multiplex operator with an enterprise value approaching $20 billion.
If the shorts were getting squeezed last Monday, the pressure didn't last long. The shares went on to give back nearly all of their 45% gain in the seven subsequent trading days. On Wednesday this week, AMC stock closed at $20.39. It was a round trip to nowhere.
Source Fool.com
