AMC Entertainment bounces back but the $16 mark remains a tough nut to crack
- NYSE: AMC is again trying to bounce off the Fed’s less hawkish rate hike.
- AMC Apes is pleased as Melvin Capital plans to create a new fund.
- AMC is readying new collectibles and NFTs ahead of blockbuster releases.
Update: NYSE AMC Entertainment made another rally attempt on Thursday, but the $16 hurdle capped further upside. The stock price entered a bearish consolidation mode, although bulls found respite after the Fed’s less aggressive than expected rate hike. Wall Street indices rebounded strongly after Fed Chairman Jerome Powell downplayed expectations of a Fed rate hike in June by 75 basis points. Investors are now eagerly awaiting AMC’s results next Monday. Optimistic expectations limit the disadvantage of the cinema operator.
AMC stock ended its mini three-day losing streak on Tuesday as broader markets rose ahead of the highly anticipated FOMC rate hike later this month. AMC shares gained 1.64% and closed the trading session at $15.51. Stocks spent most of the session trying to pick a direction on another choppy trading day. All three major indexes eventually closed higher as investors shrugged off a leaked report that the Fed was set to announce a 0.75% rate hike. The Dow Jones rose slightly by 67 basis points, while the S&P 500 and NASDAQ rose 0.48% and 0.22% respectively during the session.
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AMC Apes were in a celebratory mood after short-term villain Melvin Capital announced that he could unwind his current fund to create a new one.. Melvin Capital was one of the top hedge funds battling retail investors during Reddit’s short squeeze. AMC and its running mate GameStop (NYSE:GME) were the two battlegrounds in January 2021. It appears that Melvin Capital was unable to recover from the close of its short position in GameStop and is looking to take action for a new start. Needless to say, AMC Apes sees this as a win over another institutional investor.
AMC Stock Forecast
With the upcoming releases of Doctor Strange 2 and Top Gun: Maverick in May, AMC is rounding up more collectibles for its users. Anyone who pre-orders Top Gun tickets through AMC will be eligible for a limited-edition NFT. This is the latest in a series of giveaways AMC is offering in the NFT space to connect with young investors.
Update: Retailer-favorite AMC Entertainment stocks opened Wednesday trading in the red, with the popular meme stock losing nearly 5% in the first hour of regular trading action on Wall Street. AMC stock continues its current downtrend after the bears took a break and allowed the AMC monkeys to have three consecutive low gain days. Shares of the movie company are back below $15, nearing the lowest since March 14. The market is expecting a big interest rate hike from the Federal Reserve later today, with a 50 basis point hike widely expected, and most high-risk stocks like AMC need some words. dovish from Jerome Powell and the FOMC to stage another rally. If the Fed’s hawkish outlook holds true, AMC short sellers could have another field day.