AMC Entertainment Holdings Inc. shares have ended… Wednesday session down 8.7% at $5.58, marking another record close.
The stock's previous record closing low was $6.07, which was set on Dec. 21, 2023, according to Dow Jones Market Data, citing available data dating back to Dec. 18, 2013. The decline in AMC's AMC,
The stock price is a far cry from the peak of meme stocks, when it reached an all-time closing high of $339.05 on June 2, 2021.
Three years ago, the movie theater chain went from beleaguered victim of the pandemic to meme phenomenon. Buoyed by the WallStreetBets crowd on Reddit, AMC used a sharp rise in its stock price to capitalize on equity and debt markets, raising $917 million in January 2021.
Related: Here's what we can expect to see from meme stocks in 2024
AMC has since targeted its debt load, which will reach more than $5 billion in 2022. That year, AMC launched its own APE dividend and in 2023 completed the conversion of the APEs into AMC common stock and a 1-for-10 reverse common stock split.
In December, AMC also completed its latest public equity offering, raising approximately $350 million.
But while AMC still gets a lot of attention, the company no longer fits the bill of a meme stock, according to Alicia Reese, vice president of equity research at Wedbush. “AMC appears to have lost ground, as its stock price has fallen back to earth over the past few months, particularly since the APE folding and reverse stock split,” she told MarketWatch last month.
Related: AMC CEO slams 'prophets of doom', says company is 'blazing new paths' as it enters 2024
AMC has gained popularity for concert films of big-name stars like Beyoncé and Taylor Swift in recent months, with “Taylor Swift: The Eras Tour,” which broke records after its Oct. 12 opening. During a conference call to discuss the AMC project after third-quarter results in November, CEO Adam Aron said the success of those films could pave the way for other concert films at AMC.
In a post on X, formerly known as Twitter, on New Year's Eve, Aaron criticized “prophets of doom” who predicted to see the company's demise in 2023. “AMC is still here, still innovating, and still blazing new paths,” he said. books.
Related: AMC's strong third-quarter results lift movie theater shares
AMC stock is down 84.5% in the past 12 months, compared to the S&P 500's SPX gain of 22.1%.
