Indeed, shares of AMC stock have been in freefall. They fell 18% on Aug. 22, then another 22% overnight. Shares of AMC sold for over $3 per share as trading started on Aug. 22 and were selling for around $2 just 24 hours later.
Shares of APE stock have been doing slightly better. They opened at $1.79 per share today after opening at $2.14 on Aug. 22.
As part of the conversion, AMC will also undergo a 1-for-10 reverse stock split that should put its post-conversion price near $20.
APE Stock: End of the Dream
Traders have focused on speculation that APE stock and AMC stock may trade at the same price when the conversion happens. Few have been considering the fate of meme traders left holding the bag after the conversion.
On Stocktwits, the main emotion has been panic as shares collapse. Bears are celebrating while bulls hint darkly about conspiracies against small investors. Meanwhile, on Reddit, some bulls are trying to treat the panic as a positive sign.
Here at InvestorPlace, I’ve been begging small investors to get out based on AMC’s fundamentals. The longer actors and writers remain on strike, the longer theaters will have to wait for new products.
AMC Entertainment CEO Adam Aron has said the company could easily run out of cash, even as Barbie and Oppenheimer fill theaters. It was the theater chain’s continuing losses that caused him to sell equity during the pandemic.
What Happens Next?
A fool and his money were lucky to get together in the first place. Doing what some anonymous commenter tells you to do is no way to invest.
When it comes to AMC, the market was not being manipulated. You were.
On the date of publication, Dana Blankenhorn did not hold (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.