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AMC shares dropped 36%: Is the Meme Stock Buzz over?
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💡Summary: AMC shares dropped 36.8% to $8.62 Wednesday after the company said it plans to sell 40 million common shares. Bloomberg reported that  Meme-trader enthusiasm may have burned off. Show More
💡Summary:
AMC shares dropped 36.8% to $8.62 Wednesday after the company said it plans to sell 40 million common shares.
Bloomberg reported that  Meme-trader enthusiasm may have burned off.
Bloomberg reported that  Meme-trader enthusiasm may be helpful for raising cash through stock sales, but the buzz still hasn’t done enough for the companies’ bottom lines.
Fresh off a record closing low on Wednesday, shares of AMC Entertainment set another milestone close Thursday, with shares down 5.8% to $8.12. The stock is down 98% from its record closing high of $339.05 in June 2021.

AMC said it plans to use the proceeds to bolster liquidity and repay debt, among other things. The announcement follows last month's news: AMC converted its preferred "APE" units to common stock and conducted a reverse stock split.

AMC has sold millions of shares after becoming a meme stock. The sales helped stabilize the theater chain after the pandemic halted business. It sold so many shares, needed approval to sell even more, and issued preferred APE shares to change the internal shareholder voting structure to sell more shares. AMC said in the filing Wednesday that it will sell the new shares through “at-the-market” offerings without a specific time frame.

🎙️Q:
1. How does the new stock offering affect your stake in AMC?
2. Is the Meme stock frenzy over?

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