Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

AMC, GameStop shares fall to half of their June peaks

Stock MarketsJul 14, 2021 04:57PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, U.S. January 27, 2021. Picture taken January 27, 2021. REUTERS/Nick Zieminski/File Photo 2/2

By Sinéad Carew

(Reuters) -Shares of cinema operator AMC Entertainment (NYSE:AMC) and video game retailer GameStop Corp (NYSE:GME) fell sharply on Wednesday and were both trading below half their recent peak prices, testing the fortitude of the stocks' retail shareholders.

AMC, in its fourth straight day of losses, closed down 15% at $33.43, close to 54% below its all-time high of $72.62 reached in early June. The stock earlier fell as low as $33.25 to its lowest point since June 1.

GameStop finished down 6.9% at $167.62 after hitting a session low of $165.07, compared with its June 8 high of $344.66. GameStop, which hit a record high of $483 in late January, also registered a fourth straight day of declines.

The companies have been at the center of epic rallies in so-called meme stocks that have captivated Wall Street, hurt bearish hedge funds and raised the profile of retail investors. Both are still sitting on big year-to-date gains. AMC was still up 1,476% so far in 2021 while GameStop was up 789% for the year to date.

Their recent declines may test the individual investors that have purchased their shares in recent months, often touting their buys on sites such as Reddit's popular WallStreetBets.

"When things are going up it's easy to get on board," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa. "It could go significantly lower because there's less interest in the trade. People hate to lose money much more than they love to make money."

The decline in AMC shares came even after a strong weekend at the box office, when Walt Disney (NYSE:DIS) Co and Marvel's superhero adventure movie "Black Widow" captured $80 million in the biggest opening weekend for a movie since the pandemic.

Dollarhide noted that Disney also generated $60 million globally from selling the movie on its direct-to-consumer streaming service, which competes with movie theaters.

The COVID-19 pandemic kept theaters and other businesses shuttered for months. Concerns about the surge in cases of the latest COVID-19 variant may be exacerbating declines in so-called reopening stocks such as AMC, according to MKM Partners analyst Eric Handler.

"It's a stock that was trading up very high because it was a momentum trade and when the momentum dries up a little bit it comes down," Handler said.

For the full year 2021, AMC is expected to report an adjusted loss per share of $3.16 on revenue of $2.41 billion. For its fiscal year ending in January 2022, GameStop is expected to report a loss per share of $0.56 on revenue of $5.57 billion. Estimates for both companies were collected by Refinitiv. As of Tuesday's close, about 78 million shares of AMC, or almost 16% of its float, were sold short, according to the latest estimate from S3 Partners. That compares with 75 million shares sold short as of June 30.

About 8.68 million shares in GameStop, or 14.9% of its float, was sold short as of Tuesday's close, compared with 8.22 million on June 30, according to S3.

AMC, GameStop shares fall to half of their June peaks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
HD HD
HD HD Jul 14, 2021 8:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
meme stocks will be back in the fall leading up to Christmas. buy those dips !
Ori The Ape
Ori_The_Ape Jul 14, 2021 8:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Phew good thing Gamestop isn't a meme stock and actually has amazing fundamentals
David David
David9 Jul 14, 2021 6:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I told you guys to stay away from AMC and GME.... if you to the moon, you will pay big time...
Juan Antonio Berastegui
Juan Antonio Berastegui Jul 14, 2021 4:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
xD, can you dip it down a little more so I can buy more GME pretty please
SquadW Name
SquadW Jul 14, 2021 4:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
haahaha, you will lose it all
Ori The Ape
Ori_The_Ape Jul 14, 2021 4:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SquadW Name  Why? Give us a bearish thesis already. Bears online can't even explain their sentiments and it reeks of maniupulation and foul play. No one believes it, and the OBV indicator proves it.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email