When it rains, it pours
After a reverse stock split granting 1 common share for every 10 shares owned recently, $AMC Entertainment(AMC)$
The news was highly anticipated by the market as the new equity sale was the only lifeline for the largest movies theatre chain in US and its original motivation for the reverse stock split in the first move.
Nevertheless, the news still plummeted the stock price over 40% last week as its shareholders rushed for exits with mounting uncertainty over the prospects of the movies theatre chain as a going concern amidst rising competition from online streaming service providers the likes of $Netflix(NFLX)$
Once embraced by meme stock fanatics who collectively stock-squeezed and pushed up its stock price to the moon despite mostly shuttered theatre halls at the peak of the COVID pandemic restrictions and accumulating debts, fundamentalists have since taken over helm and sent the stock price crashing back to earth.
Despite easing of the pandemic and recent blockbuster releases, AMC is still struggling under its humongous debts. It remains to be seen how AMC is able to re-invent itself to stay relevant post pandemic amidst growingly tough competitors in a saturated market and as investors brace for more stock dilution in future to stay afloat.
Hence, I would stay away from the stock and watch the movies as it unfolds with a pack of popcorns.
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