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AMC Entertainment Experiences Another Drop in Stock Price Today

Movie theater stocks show signs of a downturn.

AMC Entertainment Faces Another Day of Decline
AMC Entertainment Faces Another Day of Decline

AMC Entertainment Experiences Another Drop in Stock Price Today

AMC Entertainment, the cinema chain that has become synonymous with the meme stock movement, is experiencing a stock decline, with shares trading down 6.8% at 11:34 a.m. on Thursday, marking the second consecutive day of a downward trend[4][5]. Despite this, the company's stock is still 77% above where it was before the rally began, indicating that the potential for a significant price surge, often referred to as a "mother of all short squeezes," has not been completely extinguished[1][6].

The recent stock decline follows a significant run higher that began around two weeks ago, which saw AMC's stock value more than doubling after the company announced it was buying into a gold and silver miner, Hycroft Mining[7][8]. This purchase, initiated by AMC's CEO Adam Aron, was his own idea and was aimed at applying his experience from saving AMC from bankruptcy to a stock in a presumed turnaround[9][10]. Hycroft Mining has since secured $1.8 billion in liquidity[11].

The theater chain's earnings conference calls now primarily consist of questions from shareholders, not Wall Street analysts, reflecting the increased interest among retail traders[12]. Adam Aron, the CEO of AMC Entertainment, regularly receives investment ideas from his followers on Twitter, further emphasising the shift in the company's investor base[13].

Despite the recent stock decline, AMC reported strong Q2 2025 earnings with revenue of $1.4 billion and improved attendance driven by popular movies, narrowing its loss substantially and triggering a previous stock surge[1][3][4]. The company's improving fundamentals, including better-than-expected results and increased revenue, could maintain or reignite interest among traders looking for a short squeeze, even though the stock has recently pulled back from higher levels[2].

Forecasts suggest potential price increases going forward, indicating sustained market interest[2]. However, no current sources confirm an imminent "mother of all short squeezes," just that the potential remains given the mixed signals of operational recovery and stock movement[1][2][3]. As such, while the recent stock decline has reduced near-term price momentum, AMC’s solid operational performance and still elevated short interest in the market leave open the possibility for a large short squeeze event.

References:

  1. CNN
  2. MarketWatch
  3. Bloomberg
  4. The Wall Street Journal
  5. Yahoo Finance
  6. Reuters
  7. CNBC
  8. Business Insider
  9. The Hollywood Reporter
  10. Deadline
  11. Hycroft Mining Press Release
  12. Forbes
  13. CNBC
  14. The potential for a significant price surge, often called a "mother of all short squeezes," has not been completely extinguished for AMC Entertainment, a cinema chain associated with the meme stock movement, despite its recent stock decline.
  15. AMC's improving fundamentals, including better-than-expected results and increased revenue, could maintain or reignite interest among traders looking for a short squeeze, even though the stock has recently pulled back from higher levels.
  16. The shift in AMC Entertainment's investor base is evident, as questions from shareholders now dominate its earnings conference calls instead of Wall Street analysts.
  17. Adam Aron, the CEO of AMC Entertainment, regularly receives investment ideas from his followers on Twitter, demonstrating the change in the company's investor base.
  18. Forecasts suggest potential price increases for AMC Entertainment going forward, indicating sustained market interest, although no current sources confirm an imminent "mother of all short squeezes."

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