Why AMC Entertainment Is Falling Yet Again
Shares of AMC Entertainment (NYSE: AMC) are falling 4.4% at 11:32 a.m. ET on Tuesday on no company-specific news. But Walmart did send a tremor through the market today, causing the Dow Jones Industrial Average to tumble almost 200 points. Still, that's less than a 1% decline for the index.
But with fears of a recession gripping the market and the retail giant saying consumers are cutting back on their discretionary spending, the movie theater operator may be a bigger target for a sell off than usual since it survives based on how many leftover dollars consumers have that they're willing to spend at the cinema.
Walmart warned profits will be soft in the second quarter and for the full year as the dreaded R-word gets bandied about. Expectations that a second straight quarter of economic contraction will have a recession declared are high, which would make for a difficult period for AMC.
Source Fool.com
