The Worst Mistake AMC Investors Can Make Right Now
Meme stocks have been a unique storyline of 2021: The "average Joe" managed to pull one over on Wall Street, and "average Joe" investors, in some cases, have made incredible amounts of money. Movie theater chain AMC Entertainment Holdings (NYSE: AMC) is symbolic of the meme stock movement and maintains a cult-like status with investors to this day.
But it's essential to point out the biggest mistake that AMC investors might be making, which is mistaking conviction to hold a stock with blind faith. AMC has some red flags that investors should consider as they hold on for dear life (HODL).
The bull case for AMC is simple at first glance. It's a redemption story, a business on the brink of ruin that fought back through the pandemic on the back of supporting shareholders. As life returns to normal, the company will return better than ever as people start going to theaters again.
Source Fool.com
