Why AMC Entertainment Stock Dropped 9% Today
Shares of movie chain owner AMC Entertainment (NYSE: AMC) fell throughout morning trading, hitting a drop of roughly 9% at 1 p.m. EDT. The broader market was selling off, too, with the S&P 500 Index down by roughly 2.5% at 1 p.m. The drops were correlated.
Over the last couple of weeks, AMC has gone through some harrowing ups and downs. These were often driven by company- and industry-specific news. For example, in an SEC filing, the company noted that it could run out of cash by year-end 2020 or in early 2021. Not surprisingly, the stock sold off. On the other side of the coin, New York State allowed movie theaters to reopen. New York is a key movie market, so investors were bullish on the news. The recent ups and downs here have been quite large at times.
Image source: Getty Images.
Source Fool.com