Why AMC Stock Dropped Friday
AMC Entertainment Holdings' (NYSE: AMC) management has been engaging with retail traders on social media. It's trying to take advantage of the newfound popularity as a meme stock to raise capital to help the underlying business. But the stock has been dropping over recent days, including an almost 7% drop during Friday's session. Shares have pared those losses, but remain down about 5% as of 2:30 p.m. EDT.
As the discussion about AMC continued to gain steam on Reddit's WallStreetBets forum, AMC CEO Adam Aron began a strategy of embracing the retail shareholders, which Aron said now make up more than 80% of the company's shareholders. This seems to have reenergized the group, driving shares up almost 300% in the last month. It also seems to have helped drive short-sellers out, forcing some to cover their positions. In that month's time, AMC shares sold short dropped from more than 22% of total outstanding shares to less than 17%, according to data from YCharts.
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Source Fool.com
