Is the meme stock craze really over?
Many professionals on Wall Street are declaring an end to the meme stock phenomenon as shares of companies such as AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) crater along with the broader stock market. In particular, analysts are pointing to shares of movie theater chain AMC, which have fallen more than 40% since the start of the year. At $16 a share, they are now 77% below their 52-week high of $72.62 reached last June.
The rout in meme stock names comes as the S&P 500 and Nasdaq fall more than 10% to officially enter correction territory. By some estimates, securities classified as meme stocks have lost $191 billion in value in recent weeks. Given the declarations about the meme stock craze coming to an end, we thought it would be instructive to round up a collection of AMC stock price predictions, looking at where analysts see the shares going in the coming weeks and months.
Price Predictions for AMC Stock
- B. Riley Financial maintains a “hold” rating on AMC with a price target of $3.50 a share.
- MKM Partners has a more bearish outlook on AMC stock with a “sell” rating and a $1 price target.
- Wedbush recently downgraded AMC stock to “underperform” from “neutral,” but maintained its price target of $7.50 per share.
- Citigroup currently holds a “sell” rating on the stock with a price target of $3.70 per share.
- Loop Capital is also in the bear camp with a $1 per share price target and a “sell” rating on AMC stock.
What’s Next for AMC Entertainment
The rollercoaster ride for stocks that has been ongoing since the first trading day on Jan. 3 looks set to continue today with all the major averages deep in the red. Meme stocks such as AMC look likely to continue falling with the broader market downturn. But while AMC stock might not return to the heights its share price scaled last year, it could be too early to declare the company down for good.
A year ago, one analyst famously put a price target on AMC shares of a single penny. The stock never reached those depths, and with economies reopening and people returning to movie theaters, there’s reason to believe that AMC, and its stock, will survive.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.