1 Underappreciated Reason Not to Own AMC Stock

AMC Entertainment Holdings' (NYSE: AMC) stock price dropped a precipitous 25% in July after a remarkable rally in 2021. Despite the recent sell-off, shares are still up 1,817% year to date. The company is a favorite among a group of investors who gather together to talk stocks on the social media platform Reddit.

Members of the WallStreetBets group have convinced others to buy and hold the stock with little regard for the company's troublesome business metrics or general investing fundamentals. In fact, group members encourage buyers of AMC stock to ignore fundamentals altogether and wait for the stock to rise "to the moon." A big part of why they think the stock will rise is because they have been maintaining an epic short squeeze, where some of those who have bet on the stock to fall have been forced to buy shares at higher prices to cover their short positions.

The lack of interest from shareholders in AMC's long-run fundamental prospects is another risk in owning the stock.

Source Fool.com