AMC Entertainment Holdings (NYSE: AMC) stock plunged over 15% in intraday trading Thursday, marking a continuation of the meme stock rally’s sharp reversal for the week. Despite this downturn, AMC stock still retains significant gains for the week.
Meme stocks, including AMC Entertainment (AMC) and GameStop (GME), witnessed a significant surge on Monday and Tuesday following the return of Keith Gill, known online as Roaring Kitty, to social media after a three-year hiatus.
Gill, who gained popularity in 2020 and 2021 as a vital figure in the GameStop short squeeze, reemerged on Sunday night, reigniting excitement among retail investors. The former financial broker and analyst became a focal point of attention during the GameStop frenzy. The House Financial Services Committee called him to testify about potential market manipulation in February 2021.
Meanwhile, FINRA data indicates a slowdown in shorting activity surrounding AMC stock this week.
On Wednesday, AMC witnessed a decrease in daily short-sale volume, dropping to 69.55 million shares compared to Tuesday’s level of 101.16 million. Monday had seen an even higher short-sale volume at 119.179 million shares.
Despite the slowdown in shorting activity, AMC continues to face significant levels of short interest, with shorts representing 21.1% of the total float, according to FactSet data. For context, “float” refers to publicly available shares for trading.
AMC Entertainment (NYSE: AMC) Stock Movement
AMC shares fell 15.32% to $4.64 on Thursday, following a 20% drop the day before. Despite a weekly surge of 52.13%, the stock remains down around 24.2% for the year.
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