AMC Stock Plunges 42% After Rapid Rally, Facing Sharp Sell‑Off

AMC’s Meme‑Stock Marathon: From Fever Pitch to Fiscal Reality

May 14 rolled in like a whirlwind, and AMC’s ticker spun wildly. After a 78 % boom on May 13, the stock opened a 130 % surge — a headline‑grabber that left traders feeling like they’d stumbled onto a rocket ship.

Highs, Lows, and Exit‑Strategy

Opened at $11.88 – the per‑day high.
Closed at $6.85 – still 32 % higher than the previous close ($5.19).
Volume? A staggering 616 million shares traded—long outpacing the usual 25 million‑day average.

The day’s roller‑coaster was complete: a 42 % drop mid‑session, but the volume‑driven trading kept the finish line lofty.

Analyst Buzz: “It’s All Hype, Folks!”

Cory Mitchell of Trading.biz offered his take:

“AMC keeps bleeding money for years. If a merry‑merry band of buyers keeps the price up, someone’s going to end up holding the bag when the tide turns. The lot’s obsessed with buying hot, profitable companies—just want to own those shares, you know?”

“This AMC move is pure hype. People are buying because they think the next wave of buyers will jump in, letting them sell at an inflated price. Short‑term gains are possible, but unless the company turns big‑time, any rally will likely crumble fast.”

Back‑to‑Back Seasons of Rumbling

Remember 2021’s meme‑stock frenzy? AMC skyrocketed 3000 % in six months, thanks to a coordinated short squeeze. Since then, the stock slid, trading below its own 2021 launch pad by September 2023.

Then, on May 12, Roaring Kitty (Keith Gill) returned to X after nearly three years of silence, post a simple drawing “pay attention.” No boardroom speak, but enough said to spark speculation that history might repeat itself.

Financial Fundamentals: Apples to Apples

Last year, AMC lost $1.01 per share – better than $2.10 in 2023 and $8.22 in 2022.
Profit? Only in 2018 after a bad 2017. Then, losses surged again.
Predicted loss for 2024: $1.60 per share; 2025 still unprofitable.

Mixing the Market: Sweet & Sour

With high volume and volatile swings, AMC is a playground for traders seeking dollar‑sized rainbows. Longs and shorts can catch big moves, but so can big losses. Price gaps can short‑circuit risk management. For a long‑horizon portfolio, this probably isn’t the stock to hold.