Here's Why AMC Stock Crashed Today

Shares of AMC Entertainment (NYSE: AMC) plunged on Thursday after the theater chain announced another stock sale. By the close of trading, AMC's stock price was down more than 20% after falling as much as 40% earlier in the day.

Prior to today, AMC's shares had soared from $12.08 on May 21 to $62.55 on June 2, fueled in part by the aggressive promotion of its stock on Reddit and other social media sites. Management, in turn, decided to cash in on the opportunity.

AMC sold 8.5 million shares of its stock to investment firm Mudrick Capital Management for $230.5 million earlier this week. AMC said it would use the funds to pay down debt and upgrade its theaters, as well for potential acquisitions.

Source Fool.com