Meme Stock Crash: 5 Worst-Performing Stocks of Reddit’s WallStreetBets

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

Number of Hedge Fund Holders: 19
Monthly Decline: 41%   

AMC Entertainment Holdings, Inc. (NYSE: AMC) is ranked first on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The company’s shares have declined by 24% over the course of the past week. The firm operates as a movie theatre chain. It is based in Kansas. The company is the second most popular meme stock and has been under immense pressure recently, registering the highest losses as compared to other meme stocks. It has been one of the most volatile stocks on the market in the past few months. 

On July 14, the share price of AMC Entertainment Holdings, Inc. (NYSE: AMC) plunged by close to 10% as a report by financial analytics firm S3 Partners revealed that the number of shorted shares of the firm had jumped more than 6% compared to a week ago. 

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.”

You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.

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