AMC stock

AMC shares fell 33% in pre-market trading ahead of its new class of shares debuting on the NYSE. Here's what could be driving the fall…

2 theater chain in the world—but AMC is No. It’s likely the debut of APE today isn’t the main thing dragging down AMC stock. - Why is AMC issuing APE shares? - If APE is good for AMC, why is AMC stock down 33%? [explainer on AMC’s APE shares here](https://www.fastcompany.com/90776281/amc-stock-price-shares-crash-as-company-announces-new-preferred-ape-stock), but in short, they are a new class of stock created by AMC. However, in pre-market trading this morning, AMC shares are down a staggering 33% as of the time of this writing.

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.

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 ...

The future of AMC Entertainment and AMC stock now rides on the capital CEO Adam Aron has raised during the meme stock craze.

[700,000 members](https://www.benzinga.com/markets/cryptocurrency/22/07/28003000/amc-has-more-free-nfts-coming-for-its-investors-heres-the-details-and-how-there-is-gold-in). Some analysts believe the Cineworld news can help AMC gain market share, but the potential bankruptcy does cast [doubt on the future of the theater business](https://www.investing.com/news/stock-market-news/analyst-says-amc-is-well-positioned-as-cineworld-confirms-it-is-considering-bankruptcy-432SI-2877456). He has given AMC stock shareholders free [“I Own AMC”](https://hypebeast.com/2022/1/amc-nft-investor-connect-shareholders-wax) NFTs. On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. [AMC](https://investorplace.com/stock-quotes/amc-stock-quote/)) stock fell nearly 40% over the weekend as the meme stock boom unraveled. The only good news is that Aron has raised capital for AMC thanks to meme traders and NFT players. [“AMC Preferred Equity” (APE) shares](https://www.fastcompany.com/90781241/amc-stock-falls-off-a-cliff-as-new-ape-shares-set-to-debut-today) today. This decline came after Gamestop chairman Ryan Cohen [closed out his position in BBBY stock](https://investorplace.com/2022/08/ryan-cohen-rocks-bbby-stock-with-new-form-144-why-is-he-selling/). All told, today’s declines could be game over — not just for AMC stock but for the whole meme stock craze. For one, the company is diluting existing shareholders with the new shares. CEO Adam Aron has been using the meme stock phenomenon to raise capital and get AMC into the non-fungible token (NFT) space. After the recent drop, though, AMC has a much more reasonable $5.8 billion market cap.

The stock was expected to dip ahead the new issue but it's still a messy market for exhibition and meme stocks.

By sending the stock flying during Covid at a crucial time, they allowed AMC to raise cash by selling shares at the inflated prices and helping it to stay financially solvent. APES are good for the company in that AMC now has a new currency it can uses to 1) strengthen its balance sheet, including reducing debt and other liabilities, and 2) invest in “shareholder value-enhancing and transformative M&A investment opportunities.” Aron has hinted that could include theaters eventually shed by Regal. AMC became a meme poster boy in early 2021 when opinionated, vocal retail investors poured into the stock to help it rise and crush short sellers, who bet the shares would fall. expect that the price of a stand-alone share of common stock logically should at least initially decline, however that investor’s economic interest will be the sum of the price of a share of common stock plus the price of an APE,” AMC said. Furthermore, we see an attractive setup for the exhibitors heading into the stronger film slates of 4Q22 and 2023 given the positive attendance and per patron spending dynamics over the past 6-12 months,” said Eric Wold of B. Remember that with the APE already having had its first NYSE trade today, the value now of your AMC holdings consists of the prices of your AMC shares and your new APE units COMBINED. [Cineworld](https://deadline.com/tag/cineworld/), confirmed it may file for Chapter 11 in the U.S. Cineworld has about $9 billion in debt, a big chunk of that acquired when it bought Regal in 2018 for $3.6 billion. Add together an AMC share plus a new APE unit, compared to just an AMC share before. But analysts who follow the sector view Cineworld’s balance sheet concerns as a company-specific issue. (Apes are also slang for amateur investors, who piled into AMC in 2021.) A report said the security was halted briefly after trading up to $9.49.

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 company also announced a new preferred dividend when it reported earnings — APE shares — which began trading this morning under the ticker symbol “APE.” ...

If it can’t regain this level, it leaves AMC vulnerable to a drop down to the $10 level. Instead, AMC stock simply dips into “no man’s land” if it loses $10 and the 2022 low of $9.70. That leaves AMC stock in a monthly-down rotation. If we see a dip down to this area, it’s important that it holds. Instead, it was a forewarning to what was coming. If it does not hold, AMC bulls will see this stock drop into the single digits.

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.

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.

On Friday, as a thank you/means of raising funds, AMC issued one preferred equity stock unit for each of its 560.82 million outstanding shares of common stock.

Those good guys are the “apes” — they also refer to themselves as “degenerates.” Aron’s talk of “prophets of doom” is a shot against institutional Wall Street investors who bet against AMC’s (and GameStop’s) success, often through the process of short-selling. “As for AMC’s liquidity, AMC ended the second quarter of 2022 with more than $1 billion of liquidity, thanks to significant amounts of cash raised in calendar years 2020 and 2021,” he added. However, we continue to be quite optimistic about the increasing demand for our portfolio of movie theatres in the fourth quarter of 2022 and calendar year 2023.” (Regal confirmed the report today.) AMC is the largest movie-theater chain in the America; Regal is number two. The move gave AMC an alternative to the less-palatable option of issuing more shares of its common stock; the company will be able to sell some of the new units to raise funds. The acronym doubles as a nod to an inside joke among the Reddit users who bought up [AMC stock](https://www.indiewire.com/t/amc-stock/) during the troubled times of the early pandemic, possibly saving the theater chain from going under.

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)

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%.

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.

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

NYSE:AMC had its worst trading day in years as the meme stock began trading its preferred APE shares on the NYSE. On Monday, shares of AMC tumbled by.

Gold has broken out of its daily consolidation channel and advanced toward $1,750 in the American session on Tuesday. EUR/USD has lost its recovery momentum after having climbed above parity with the initial reaction to the disappointing US PMI and New Home Sales data. The author makes no representations as to the accuracy, completeness, or suitability of this information. The pair remains on track to snap a four-day losing streak. The author has not received compensation for writing this article, other than from FXStreet. The author will not be held responsible for information that is found at the end of links posted on this page. [Stay up to speed with hot stocks' news!](https://www.fxstreet.com/markets/equities) [Fed](https://www.fxstreet.com/macroeconomics/central-banks/fed) meeting at Jackson Hole, Wyoming later this week. This negativity hit other meme stocks as well with GameStop (NYSE:GME) and Bed Bath and Beyond (NASDAQ:BBBY) slumping by 5.32% and 16.23% respectively during Monday’s session. It also does not guarantee that this information is of a timely nature. NYSE:AMC had its worst trading day in years as the meme stock began trading its preferred APE shares on the NYSE. On Monday, shares of AMC tumbled by 41.95% and closed the trading session at a price of $10.46.

The new preferred shares give it the ability to raise cash through equity. After a loss of more than $100 million in free cash flow in the second quarter, it ...

There's a good argument for APE shares to be worth more than AMC common stock. AMC survived the pandemic, but its balance sheet is still a wreck. Effectively, the company gave a stock dividend, but in the form of preferred stock, creating a new dual-class structure rather than just issuing more common stock. Shareholders had previously blocked its ability to sell more common stock. At APE's current price, that would raise roughly $3.5 billion. In its second day of trading, AMC Preferred Stock (NYSE:APE) popped as investors embraced the new dual class structure and seemed to migrate from the common stock to the preferred alternative.

Wedbush updated its model on AMC Entertainment (AMC) Tuesday following the trading of AMC Preferred Equity (APE).