5 Reddit’s WallStreetBets Stocks That are Tumbling

2. AMC Entertainment Holdings, Inc. (NYSE: AMC)

Number of Hedge Fund Holders: 19 

Percentage Losses Over Last Five Days: 11.67%

AMC Entertainment Holdings, Inc. (NYSE: AMC) is placed second on our list of 10 Reddit’s WallStreetBets stocks that are tumbling. The firm is based in Kansas and operates as a movie theatre chain. The stock is one of the most volatile ones on the market and has seen share price decrease in value despite mentions on Reddit and other social platforms over the past few weeks. The short interest on the stock is close to 16%. The company has a market cap of over $16 billion and posted $1.2 billion in revenue last year. 

On June 4, investment advisory Wedbush reiterated a Neutral rating on AMC Entertainment Holdings, Inc. (NYSE: AMC) stock but raised the price target to $7.5 from $6.5, highlighting that the volatility in the share price of the firm was likely to continue. 

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $34 million in AMC Entertainment Holdings, Inc. (NYSE: AMC), up from 16 in the preceding quarter worth $24 million. 

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE: AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”