- Movie theatre chain AMC (AMC, $10.46) saw a sharp decrease in share price and a loss of more than 26% the week prior, losing more than 30% of its worth in premarket trading. The decline occurs as Cineworld said on Monday that company is thinking about declaring bankruptcy.
- At the end of the second quarter, AMC reported having more than $5b in long-term debt. When lease obligations and other long-term liabilities are included, the total increases to more than $10b.
- The AMC preferred share payout may also have had an effect on trade. The "APE units" issued by the theatre chain, a vehicle for the business to perhaps generate more money in the future, began trading on Monday. AMC shares and new APE units make up the value of an AMC investment.
Why it matters
Meme stock prices decline to close another tumultuous trading week. Along with AMC's stock declining, Bed Bad & Beyond (BBBY, $9.24), a fellow meme stock, too experienced a 40% loss last Friday following investor Ryan Cohen disclosing that he had sold all of his stock in the company.
