Cinema chain AMC’s share price fell another 15 percent on Wednesday.
Cinema chain AMC’s stock and other so-called meme stocks are in sharp decline.
AMC’s share price melted 15 percent on Wednesday. Gaming chain Gamestop fell about 7 percent and Blackberry closer to four percent.
When the New York Stock Exchange closed, an AMC share cost $ 33.4. It has fallen far from its peak in early June. On Wednesday, June 2, the company’s stock peaked at $ 72.62. Since then, the price has melted by almost 54 percent.
“Meme stocks have brought big profits for many. It has created bad, problem-like practices for many investors. That can cause problems, ”said Ty J. Young, CEO of Wealth Management Ty J. Young In an interview with Yahoo Finance.
At the latest in 2021, the concept of meme stock has risen to the investment slang. The term refers to a stock in which small investors who share investment tips on social media and discussion boards invest more or less carnivalistically.
During 2021, such small investors will have invested in equities that have been sold short by many large hedge funds.
AMC is the latest front end of the movement. Its stock rose explosively in May. At the end of the first trading day of the month, the share price was $ 9.71. Less than a month later, the price was $ 62.55. Over the month, the share price rose 544 percent.
Such the increases in value before 2021 sounded unprecedented. However, the January Gamestop drug had taught retail investors that arbitrary-sounding rises are possible.
Gamestop’s share price rose as high as more than 1,700 percent in January. It brought a hedge fund to the investor who invested in Gamestop’s stock in a collapse Huge losses for Melvin Capital.