- NYSE:AMC fell 5.76% on Friday to close out another choppy week for the cinema chain.
- AMC CEO says the stock is once again under attack by short sellers.
- Fellow meme stock GameStop also falls despite a milestone date for Redditors.
NYSE:AMC saw its downward trend continue this week as the relentless correction of growth sectors and overvalued stocks hit retail investors once again. To close the week out on Friday, AMC fell a further 5.76% to close the trading day at $9.33, as the stock falls below the 50-day moving average once again. The extended decline caps off a tumultuous four-week period for AMC where the stock trimmed off 35% in value, and is now down 54% from its 52-week high price of $20.36 set during the short squeeze event at the end of January.
Speaking of short squeezes, AMC CEO Adam Aron recently came out to say that the stock was once again being targeted by short sellers, as the war against retail investors continues. The total number of shares shorted rose by 50% to a total of 73.8 million shares in the month of March. Will this signal another short squeeze? It’s difficult to say, considering a coordinated short squeeze requires just that, coordination. Institutional investors are more likely to be careful in trying to avoid falling into a similar situation that left Melvin Capital bankrupt in January.
AMC Stock news
Friday also saw the end of the long-awaited standoff between r/WallStreetBets Redditor Roaring Kitty and institutional investors. Keith Gill is said to hold 100,000 shares of GameStop (NYSE:GME) at an average cost of $27 per share, and had an estimated $7 million in call options that expired on Friday. Gill exercised all of his options, and Wall Street may finally have found some closure on the great short squeeze event of 2021.