AMC stock

AMC's common stock fell sharply on Monday as a rival warned of potential bankruptcy and a new preferred share class hit the market.

The new share class resembles a stock split in some ways, and the combined value of one AMC share and one APE unit on Monday was trading roughly equal to Friday's AMC closing price. An AMC share plus a new APE unit added together — compared to just an AMC share previously," Aron wrote on Both names have become meme stocks, with a large percentage of retail investors and social media followings. The drop comes as rival Cineworld said on Monday it is considering filing bankruptcy. "It's effectively a two-for-one stock split and I would expect that once it becomes effective, that the price per share should drop by about 50%. The new preferred shares from AMC could also be impacting trading.

"This new AMC Preferred Equity gives AMC a currency that can be used in the future to strengthen our balance sheet," AMC said earlier this month.

Much of Monday's decline could be attributed to the price adjustment that occurs when a dividend is issued, depending on what price AMC's "APE" trades for. An AMC share plus a new APE unit added together — compared to just an AMC share previously," Aron "This new AMC Preferred Equity gives AMC a currency that can be used in the future to strengthen our balance sheet, including by paying down debt or raising fresh equity. GameStop and Bed Bath & Beyond fell 6% and 12% in Monday morning trades, respectively. But AMC's big stock price decline on Monday could also partially be attributed to news that one of its biggest competitors is considering Chapter 11 bankruptcy. - AMC Entertainment plunged 40% on Monday ahead of the company's issuance of "APE" preferred stock.

AMC Entertainment Holdings Inc.'s preferred stock made its debut Monday amid a selloff in other meme stocks and the broader market, making for a volatile ...

AMC Entertainment Holdings stock fell 35% in premarket trading following its dividend of preferred shares. However, an even bigger drop might have been ...

Shares of the largest movie exhibitor and a meme mania favorite, AMC Entertainment Holdings (AMC) are plunging in the pre-market session today after its ...

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 ...

AMC Entertainment (NYSE: AMC) stock is trading sharply lower in US premarket price action today. Other meme stocks including GameStop, Bed Bath &

NYSE: AMC closed out the week with yet another decline as the movie theater chain amassed a 25% loss for the week. On Friday, shares of AMC dropped lo.

The author makes no representations as to the accuracy, completeness, or suitability of this information. Ethereum price remains a beta asset relative to Bitcoin price as it has dropped nearly 8% over the last twelve hours while BTC has slid roughly 4%. EUR/USD has extended its slide and touched its weakest level since December 2002 below 0.9950 during the American trading hours on Monday. The author will not be held responsible for information that is found at the end of links posted on this page. The author has not received compensation for writing this article, other than from FXStreet. It also does not guarantee that this information is of a timely nature. With movie theaters struggling to regain pre-COVID popularity, shares of AMC also fell as a result. On Friday, shares of AMC dropped lower by 6.58% and closed the trading week at $18.02. Shares of AMC rival Cineworld (LON: CINE) which trades on the London Stock Exchange had a bad to say the least. AMC and GameStop both fell in sympathy to Bed Bath and Beyond, as did FuboTV (NYSE: FUBO) which saw a further 8.81% loss. [Fed](https://www.fxstreet.com/macroeconomics/central-banks/fed) on Friday put a damper on investors’ hopes for a turnaround on interest rate hikes. NYSE: AMC closed out the week with yet another decline as the movie theater chain amassed a 25% loss for the week.

The “meme-stock” reprise of 2022 took another beating on Monday as shares in the movie theatre chain AMC, one of the companies driven to dizzying heights by ...

Since 2015, stock in Bed, Bath & Beyond has dropped from $77 a share to around $10. The The performance of the two cinema companies is strikingly different.

AMC issued a stock dividend, and it's crushing the stock, but there's more to the story.

19, 2022, after the market closed got a share of AMC Preferred Equity today. In this case, the stock was AMC Preferred Equity, which has the same voting rights and economic interest as a traditional share of AMC. Management issued AMC Preferred Equity (NYSE: APE) to shareholders on a 1-to-1 basis over the weekend, resulting in effectively a 2-for-1 stock split.

The AMC Preferred Equity units were announced earlier this month as a special dividend to class A common stockholders.

(ticker: AMC) announced in early August. “APE” special preferred share dividends began trading Monday on the New York Stock Exchange. ](https://www.barrons.com/market-data/stocks/amc)

Meme stock investors are playing with fire once again by amplifying demand for this movie theater chain's stock.

AMC has benefited from investors who have focused on price but haven't stopped to think about what the company is worth. The rest is available via credit lines, which isn't ideal because AMC already has $5.5 billion in long-term debt and no cash profits to pay it down. Yes, shareholders could become [bag holders](https://www.fool.com/investing/how-to-invest/stocks/bag-holder/) should the stock price reflect that. Unfortunately, AMC is still losing a lot of money; management noted that operating losses, the money spent on day-to-day operations, were $76.6 million in the second quarter. Here is why investors should think twice before buying shares in this company and before trusting management to spend the funds raised properly. In the second quarter of this year, free cash flow was negative $134.8 million.

Believe it or not, investors in AMC have made money today. AMC Entertainment (AMC -70.98%) issued shares of AMC Preferred Equity, or APE, on Monday ...

22, 2022. This video gets into what investors need to know. [AMC](/quote/nyse/amc/) -70.98%) issued shares of AMC Preferred Equity, or APE, on Monday morning and sent shares down over 40%.

A clutch of stocks favored by retail traders tumbled on Monday in volatile trading as news that UK-based Cineworld warned of a possible bankruptcy sent AMC ...

[(BBBY.O)](https://www.reuters.com/companies/BBBY.O), was down 3%, continuing Friday's 40.5% slump after billionaire Ryan Cohen abruptly dumped his stake in the struggling retailer. "The AMC distribution of “APE” is somewhere between a stock split and a stock dividend," Rick Meckler at Cherry Lane Investments. The COVID-19 lockdowns severely impacted the business of cinema operators. This seems designed to effectively allow for the issuance of more equity by AMC without technically breaking the company’s promise to not issue more common shares further potentially diluting their value." "So you had similar investors in Bed Bath and Beyond and Gamestop and AMC.” AMC and APE shares were together trading at $17.14, which was below than AMC's last closing price of $18.02, according to Reuters calculations. AMC common shares were nearly 40% lower at $10.93. movie chain's preferred shares started trading. [(GME.N)](https://www.reuters.com/companies/GME.N). Register now for FREE unlimited access to Reuters.com [(CINE.L)](https://www.reuters.com/companies/CINE.L) warned of a possible bankruptcy sent AMC Entertainment Holdings' shares [(AMC.N)](https://www.reuters.com/companies/AMC.N)diving almost 40% on the day that the U.S. [(BBBY.O)](https://www.reuters.com/companies/BBBY.O) and GameStop Corp [(GME.N)](https://www.reuters.com/companies/GME.N) also slid as AMC's preferred stock, trading under the ticker "APE", opened at $6.21 on the New York Stock Exchange.

The battle for a rise of a planet of the APEs has taken a turn for the worse for retail investors. Investors in AMC Entertainment (AMC) were sitting on ...

APE begin trading Monday, and at least early on, a slide in AMC shares was mitigated by the APE unit trading higher. that $18.02 Friday close for AMC alone. [OTCPK:CNWGY](https://seekingalpha.com/symbol/CNWGY)) ( [OTCPK:CNNWF](https://seekingalpha.com/symbol/CNNWF)) was [preparing to file for bankruptcy](https://seekingalpha.com/news/3875288-amc-plunges-as-rival-cineworld-confirms-potential-bankruptcy-filing?source=content_type%3Areact%7Csection%3AAll%7Csection_asset%3ANews%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1) (though many analysts agree the chance of contagion with AMC is low), and AMC continues to be buffeted daily by general favor or disfavor of the [meme-stock trade](https://seekingalpha.com/news/3875076-risk-off-trading-sends-gamestop-meme-favorites-highly-shorted-stocks-lower?source=content_type%3Aall%7Csection%3Asearch_bar%7Csection_asset%3Asearch-advanced%7Ctopic%3Aheadlines%7Crow_num%3A3%7Csearch_item%3ARisk%26%2345%3Boff%26%2332%3Btrading%26%2332%3Bsends%26%2332%3BGameStop%26%2344%3B%26%2332%3Bstrongmeme%2Fstrong%26%2332%3Bfavorites%26%2344%3B%26%2332%3Bhighly%26%2345%3Bshorted%26%2332%3Bstrongstocks%2Fstrong%26%2332%3Blower%7CURL_first_level%3Asearch). [AMC](https://seekingalpha.com/symbol/AMC)) were sitting on something of a paper profit early Monday, as the weekend's dividend of one AMC Preferred Equity ( [APE](https://seekingalpha.com/symbol/APE)) unit per AMC share arrived in holders' accounts. [AMC](https://seekingalpha.com/symbol/AMC)) was down 41.7% to $10.50, while [APE](https://seekingalpha.com/symbol/APE) was moving for $5.50 each - down 20% from premarket quotes, and combined with AMC, adding up to just $16 vs. (AMC)](/symbol/AMC?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3AAMC), [APE](/symbol/APE?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3AAPE) [CNWGY](/symbol/CNWGY?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ACNWGY), [CNNWF](/symbol/CNNWF?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ACNNWF)By: [Jason Aycock](/user/427396/profile?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cbutton%3Aauthor_name%7Cfirst_level_url%3Anews), SA News Editor [33 Comments](#comments)

Investors in AMC Entertainment (NYSE: AMC) did not have a fun trading session on August 22, as the stock plummeted by 41.59%.

[trading](https://finbold.com/guide/stock-trading/) in a wide range from $10.30 to $27.50, with prices falling strongly in the last few trading sessions. Owing, in part, to the fact that crypto hasn’t been around for a long time. But what you want to do is, you want to play it smart you want to take a little bit off the table; as you hit a resistance line, take a little bit off when you hit the next one, take a little bit off. “Just keep an eye on the stock market. “If you’re in these trades, that’s all fine and good, and if you’re in the money, there’s no reason you have to get all the way out. AMC’s AMC Preferred Equity Units, also known as Apes, launched on the same day with the ticker APE, with the new class of stock starting trading on Monday following the opening of the stock market.

There's been speculation among AMC investors that short sellers are using synthetic shares to afford their positions. Here's what you need to know.

[AMC](https://www.thestreet.com/quote/AMC)) - [Get AMC Entertainment Holdings Inc. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. According to CEO Adam Aron, in March, excluding index funds, retail investors owned more than 90% of AMC's float. (Disclaimers: this is not investment advice. Are AMC Short Sellers Using Synthetic Shares? These products offer investors huge returns… but carry huge risks. For one thing, trading derivatives such as options can be extremely risky. You can lose more money than your invested principal. AMC Stock And APE: Are Short Sellers Using Synthetic Shares? - AMC investors have questioned whether short sellers are using synthetic shares to cover their positions.

Wedbush lowered its AMC price target to reflect more shares after it issued APE, its preferred equity stock.

"We note that at the August 22 closing price of $6, AMC would have to issue over 900 million shares of APE to repay its entire debt balance," Reese wrote. Reese also noted that the Cineworld bankruptcy should not impact AMC as it doesn't relate to negative industry dynamics. "While it makes little sense for APE to trade below AMC, we think that it reflects concerns over impending dilution," Alicia Reese wrote in a Tuesday note. On the first day of APE trading, combined shares lost $800 million in enterprise value from Friday's closing price of $18.01, according to the note. AMC closed at $10.46 while APE ended the day at $6. "AMC is pre-authorized to issue up to 4.5 billion additional preferred shares of APE to raise cash."

The company billed the arrangement as a new way to raise money. Corporate governance experts and finance pros are keen to see if it catches on.

The APE units have the same voting rights as common stock, but are trading at a discount. “It’s all legal and by the book.” Corporate governance experts and finance pros are keen to see if it catches on more broadly for other companies struggling to raise cash, But earlier this year, shareholders rejected management’s request to issue yet more common stock, worried about further diluting their holdings. AMC Entertainment aimed to cash in on its buzzy popularity on Monday with a special dividend that’s being closely watched by meme-stock traders and market watchers. Corporate governance experts and finance pros are keen to see if it catches on.