Can AMC Stock Weather This Storm In The Markets?

$AMC Entertainment(AMC.US)$ Fox Business journalist Charlie Gasparino spoke out about the participation of retail investors in the stock market.According to him, the downturn in the markets is due to major hedge funds de-risking by liquidating their stock holdings and other higher-risk investments.Gasparino believes the stock market will get even worse when retail investors bail.

The market bearishness has also demonstrated that AMC stock is no longer serving as a market hedge.The vast majority of AMC's float is currently owned by retail investors. Excluding index funds, individual retail investors own more than 90% of AMC's total common stock.

This could explain the high share price levels sustained by AMC since the beginning of last year, when investors started piling into the meme stock. AMC shareholders have indeed been sticking to their buy-and-hold strategies.

What differentiates AMC and other meme stocks from the rest of the market is the reason why investors are betting on these stocks. They're not necessarily interested in business fundamentals, but rather in defeating short sellers by causing short squeezes.