AMC (NYSE: AMC) stock price is experiencing intense selling pressure these days. After tanking 71.38% in August, the shares of the American entertainment company have extended their loss by another 35.3% in September. The latest analysis reveals that the stock has plunged to its lowest level in history.
The US equities are experiencing a very bearish sentiment for the past few days. Since the start of the week, the S&P 500 index has lost 64 points. The Nasdaq 100 index has declined even more. In these market conditions, meme stocks like AMC and Gamestop have taken the hardest hits.
According to the latest news, AMC intends to sell 40 million shares at the market price. This will be the company’s first sale after the conversion of its preferred equity units (APE) to common shares last month. As per the company, the shares are being sold to raise funds as it is struggling financially.
On Thursday, AMC stock price closed at a new all-time low. Just a few weeks ago, the company had a reverse stock split and APE conversion to the common shares. Since then, analysts have been prepared for more dilution from the company, which was finally announced this week.
In my last analysis of AMC shares, I mentioned the significance of the $10.75 support level. This support level was breached on Wednesday. Since then, the price has been in a tailspin. There are still no signs of any reversal, and I won’t be surprised if it tanks more from here.
AMC stock price forecast will remain bearish as long as it trades below $10.75. Bulls need to reclaim this level to show some strength. AMC is not the only meme stock experiencing a sell-off, Gamestop stock has also been in a downward spiral since the release of its latest earnings report.
In the meantime, I’ll keep sharing updated AMC shares and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Sep 08, 2023, 09:22 BST 09:22