AMC Entertainment's shares fell, suggesting meme stock mania may be coming to an end.
 | WED, JUL 14, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 149.15 | +3.51 | +2.41% | | MSFT | 282.51 | +1.53 | +0.54% | | KO | 56.26 | +1.24 | +2.25% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AAPL | 149.15 | +3.51 | +2.41% | | BAC | 38.86 | -1.00 | -2.51% | | AAL | 20.62 | +0.60 | +3.00% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 149.15 | +3.51 | +2.41% | | AMD | 89.05 | -1.21 | -1.34% | | MSFT | 282.51 | +1.53 | +0.54% | |
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AMC Entertainment's share price has been cut in half from its peak, a sign of investor fatigue as the meme stock mania continues to fade out.
The movie theater chain's stock tumbled 15% to $33.43 apiece on Wednesday, less than half of its all-time high of $72.62 in early June. The decline brought its month-to-date losses to 41%.  Other retail favorites are also pulling back swiftly. GameStop, the original meme stock king, has fallen more than 21% this month, while newcomers Clover Health and Clean Energy Fuels have plunged 34.8% and 22.5% in July, respectively.
While the pullback doesn't make a huge dent in their meteoric rallies of 2021, it showed that investors have begun to lose patience and rush for the exits as AMC's and GameStop's turnaround plans fell short for many. Meanwhile, their recent stock sales also diluted existing shareholders' ownership to a great extent.
Many on Wall Street believe more losses are ahead for these speculative names as their big run-ups have pushed their valuations to unsustainable levels. None of the analysts covering AMC and GameStop have a buy rating on the stocks, according to FactSet. "While the declines in these asset prices has been rapid, their levels are still historically elevated, which could lead to further pain in the future," Maneesh Deshpande, Barclays head of U.S. equity strategy and global equity derivatives, said of meme stocks in a note. |
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