Don't be fooled by the return of meme stocks. It's curtains for AMC Entertainment (NYSE: AMC ) stock.
Many investors fear that REITs will crash if we hit a recession. But I expect the opposite. As weird as it may sound, I think that a recession would benefit REITs.
AMC Entertainment (NYSE: AMC ) has certainly seen its fair share of upside during recent meme stock rallies. In fact, during this year's recent surge, AMC stock soared as speculators piled into this beaten-down name.
AMC Entertainment (NYSE: AMC ) is a favorite of meme stock investors and moviegoers — and for good reason. The theater chain's hundreds of locations have provided a nostalgic pastime for many and the business does appear to be rebounding from pandemic lows.
The AMC Entertainment (NYSE: AMC) stock price continued its downfall on Monday despite some positive moves in the industry. It slipped by over 2.20% in the pre-market session after falling by 5.4% on Friday.
AMC Entertainment Holdings (NYSE:AMC) must raise more capital in the coming months, and the so-called ‘meme stock' is expected to stay volatile, that's according to analysts at Wedbush. The cinema operator has managed to repay around $1 billion debt since 2022, but it still has $4.4 billion outstanding and the next maturities come due in 2026, analyst Alicia Reese has highlighted.
AMC Entertainment (NYSE: AMC ) has been rangebound as of late, but don't assume that AMC stock is just sitting tight for the next wave of speculative frenzy about meme stocks. Sure, anything's possible, including another social media blitz by famed meme trader Keith “Roaring Kitty” Gill.
AMC Entertainment (NYSE: AMC ) stock couldn't hold on to all of its gains after the recent meme stock rally. After soaring 32% in one day following the social media return of Roaring Kitty, it gave back more than one-third of them and has essentially held that position since.
In the closing of the recent trading day, AMC Entertainment (AMC) stood at $4.81, denoting a -1.03% change from the preceding trading day.
As the stock market grows, savvy market watchers must know that all that glitters is not gold. In the landscape of soaring indices, certain stocks represent ticking time bombs, laden with issues that could lead to significant declines when the market cools off.
Meme stocks are essentially shares of a company that have gained immense popularity through social media. Keith Gill, better known as “Roaring Kitty” on social media, helped start this craze, which became amplified through the subreddit r/wallstreetbets.
The Federal Reserve is yet to cut interest rates and make capital cheaper. FUD fund futures project the central bank will cut rates two times this year, with the first one in September, which could influence decisions on meme stocks to sell.