AMC falls 40% after a volatile day on Wall Street
The American cinema chain AMC dropped by 40% on Wall Street this Thursday after doubling its value the day before. It coincided with another outbreak of volatility among a group of shares linked to memes and social networks.
After 11.00 on the New York Stock Exchange, AMC had been paralyzed by high volatility and was down by 38.62%, standing at $38.40.
AMC sent wrong messages to investors
Before opening the stock market, AMC announced a sale of 11.5 million shares to take advantage of its strong appreciation. However, it sent an unusual message of caution to investors that betting on its securities could generate losses.
The firm stated that its current prices reflect dynamics not related to its background business or macroeconomic or sector fundamentals. AMC warned investors against investing in its class A shares unless they are prepared to risk losing all or a substantial portion of their investment.
AMC has been going strong for several days related to other sales of shares and a portal for retail investors in which it offers promotions. However, volatility among a group of values associated with memes also increased.
The action of the largest US cinema chain has been among the most thriving in the US market due, in large part, to the GameStop phenomenon last January.
AMC is one of the favorite values of Reddit forums such as Wall Street Bets, along with others such as Blackberry or Sundial Growers. This Thursday, they also registered notable movements due to the contagion effect.
Blackberry started the day with a 26% advance but lost 2%. Meanwhile, Sundial Growers remained with a 21% progress. GameStop dropped by 10%.
The COVID-19 pandemic increased the popularity of commission-free trading applications in the US last year.
In addition, a poll released yesterday by Wells Fargo revealed that the GameStop stock market phenomenon had triggered interest on Wall Street even among American teenagers. They use social media to some extent to learn about finances.
