Meme stock mayhem: AMC plunges on Regal Cinema bankruptcy fears, $APE debut
You’ve got to give meme stock traders credit for one thing, at least. They certainly keep the markets interesting.
Shares of AMC plunged in early trading Monday, falling 33% to $12.15 as of 10:00 a.m. ET. The fall came after competitor Cineworld, which owns Regal Cinemas, said it was considering filing for bankruptcy. While AMC said it has high liquidity and is confident about the future, investors were less certain.
Monday also marks the trading debut of AMC’s preferred equity units, which are trading under APE. Those meme-friendly shares, which began trading less than 10 minutes after market open, quickly gained 33%, before settling down to a 25% gain at 10:00 a.m. ET.
The yo-yoing AMC stocks come after the company’s shares fell 26% last week. The stock is now 75% off of its 52-week high.
AMC CEO Adam Aron, on Sunday, warned traders of today’s volatility.
“Remember, with the APE seeing its first trade on the NYSE at some time tomorrow morning, the value of your AMC investment will be the combination of your AMC shares and your new APE units. An AMC share plus a new APE unit added together — compared to just an AMC share previously,” he wrote on Twitter.
Meanwhile, shares of Bed Bath & Beyond managed to gain a little ground , jumping 2% following Friday’s drop of more than 40%. That followed news that GameStop chairman Ryan Cohen had liquidated his shares of the home good retailer. Shares were down another 6% on Monday in early trading.
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