AMC and GameStop shares fall to half of their June peaks – .

AMC and GameStop shares fall to half of their June peaks – .

July 14 (Reuters) – Shares of movie theater operator AMC Entertainment (AMC.N) and video game retailer GameStop Corp (GME.N) fell sharply on Wednesday and were both trading below half of their shares. recent price spikes, testing the strength of retail shareholders’ stocks.

AMC, for its fourth consecutive day of losses, closed 15% lower at $ 33.43, nearly 54% below its all-time high of $ 72.62 reached in early June. The stock fell to $ 33.25 previously at its lowest level since June 1.

GameStop finished down 6.9% to $ 167.62 after hitting a session low of $ 165.07, from its June 8 high of $ 344.66. GameStop, which hit a record high of $ 483 at the end of January, also recorded a fourth consecutive day of decline.

Companies have been at the center of epic rallies in so-called memes stocks that have captivated Wall Street, hurt bearish hedge funds and raised the profile of retail investors. Both are still sitting on big gains since the start of the year. AMC was still up 1.476% so far in 2021 while GameStop was up 789% for the year to date.

Their recent declines can test individual investors who have bought their stocks in recent months, often touting their purchases on sites like Reddit’s popular WallStreetBets.

“When the going is going, it’s easy to join us,” said Jake Dollarhide, Managing Director of Longbow Asset Management in Tulsa. “It could go down dramatically because there is less interest in trading. People hate losing money much more than they love making it. “

The drop in AMC shares came even after a strong weekend at the box office, when Walt Disney Co and Marvel’s superhero adventure film “Black Widow” captured $ 80 million in the biggest weekend. -end opening of a film since the pandemic.

Dollarhide noted that Disney also made $ 60 million worldwide by selling the film on its direct-to-consumer streaming service, which competes with theaters. Read more

The COVID-19 pandemic has shut down theaters and other businesses for months. Concerns about the surge in cases of the latest variant of COVID-19 could exacerbate declines in so-called reopening stocks such as AMC, according to MKM Partners analyst Eric Handler.

“This is a stock that was trading really high because it was a dynamic trade and when the momentum dries up a bit it goes down,” Handler said.

For the full year 2021, AMC is expected to report an adjusted loss per share of $ 3.16 on revenue of $ 2.41 billion. For its fiscal year ending January 2022, GameStop is expected to post a loss per share of $ 0.56 on revenue of $ 5.57 billion. Estimates for both companies were collected by Refinitiv.

At Tuesday’s close, around 78 million AMC shares, or nearly 16% of its free float, were sold short, according to the latest estimate from S3 Partners. This compares to 75 million shares sold short as of June 30.

About 8.68 million GameStop shares, or 14.9% of its free float, were sold short at Tuesday’s close, up from 8.22 million on June 30, according to S3.

Reporting by Sinéad Carew; Editing by Nick Zieminski and Will Dunham

Our Standards: Thomson Reuters Trust Principles.


Please enter your comment!
Please enter your name here