AMC Entertainment Holdings, Inc. (NYSE:AMC) shares continue to fall Wednesday ahead of a 10-to-1 reverse stock split scheduled to take effect Thursday.
What To Know:
AMC remains a favorite among retail investors, especially the "apes" who are bullish on heavily shorted stocks like GameStop Corporation (NYSE:GME) and Bed Bath & Beyond, Inc. (OTC:BBBYQ). In fact, the "apes" are so heavily invested in AMC that the company chose the symbol "APE" for its AMC Preferred Equity Units (NYSE:APE). Retail investors known as "apes" also tend to be active on social media sites, and AMC is currently among the top trending tickers on WallStreetBets and Yahoo! Finance.
Benzinga obtained commentary on AMC and APE from executives at Stocktwits, a financial social media site frequented by retail investors.
Tom Bruni, senior writer at Stocktwits stated, "Sentiment has never felt worse in regards to AMC. AMC investors who are still around are waking up to the reality that there are new shinier toys in the market that people can play with, whether that's new and hotter meme stocks like TUP or WE or more traditional events such as NVDA earnings."
Tommy Tranfo, head of community at Stocktwits commented, "There was a general expectation among investors that the gap between $APE and $AMC shares would close by $APE units moving upwards, but $AMC shares are moving down drastically."
The AMC 10-to-1 reverse stock split is scheduled to take effect Thursday, and AMC Preferred Equity Units (APE) will be converted to AMC common stock the following day. The number of AMC shares will increase from approximately 542.2 million to 550 million shares following the reverse split and stock conversion.
AMC continues to fall on very heavy trading volume. According to data from Benzinga Pro, more than 90.5 million shares have been traded in the session, compared to the stock's 100-day average of 32.483 million shares.
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AMC Price Action: According to data from Benzinga Pro, shares of AMC are down 16% at $2.14 at the time of publication.
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