Originally Posted by MTG#10:
This is mostly whales, don't kid yourself. Retail alone could not even come close to moving the price like this. And all at once they will coordinate a sell and crash the price. They did the same thing twice with GME.
Basically this.
So hard to predict how far it goes but the dump will be pretty swift at some point. [Reply]
Most professional strategists are advising retail traders in AMC's stock to be cautious after its latest one-day insane move higher that is completely devoid of fundamental analysis.
"When the music stops, this stock is going to fall hard in my opinion," said Miller Tabak strategist Matt Maley on Yahoo Finance Live. Shares of AMC exploded more than 100% in afternoon trading on Wednesday, leading the way in a renewed bid by retail investors to send meme stocks such as GameStop, popular earlier in the year, back to dizzying new valuation heights.
AMC's stock price was sent into overdrive starting on Tuesday, as the company — which like other meme names has weak fundamentals for a myriad of reasons — unveiled an 8.5 million share sale. The company fetched $230.5 million in the sale to investor Mudrick Capital (which then reportedly sold the stake, saying the stock was overvalued). The movie theater chain has reportedly earmarked the money for the acquisition of closed theaters.
Shares have also been boosted by a favorable box office performance during Memorial Day weekend, experts said.
AMC's market cap now stands at a lofty $30 billion in spite of steep losses through the COVID-19 pandemic and an uncertain post-pandemic life.
Maley added, "Some people may think it [AMC] could go to $50. But if you think that, you are betting on a Tesla-type game plan here where they [AMC] could change the world. I don't see that."
Maley made those comments earlier in the day when AMC shares were trading around $36. As of Wednesday at about 2:45 p.m. ET shares were around $61. [Reply]
