Complete News World

AMC is "in the red" after shooting a 38% shooting at the start of the Wall Street - Stock Exchange session

AMC is “in the red” after shooting a 38% shooting at the start of the Wall Street – Stock Exchange session

The AMC movie theater chain has canceled the 38% gain recorded in the first hours of trading on Wall Street. The company’s stock was down nearly 9%, and just moments later, it was back on positive ground.

Meanwhile, AMC bonds tumbled again, trading “in the red,” losing more than 1%, to a price close to $ 26.

Despite the busy session, AMC set a record this Friday, when securities traded at $ 36.72, which exceeded the closing cap, which dates back to March 2015. In total, AMC’s stocks were already up 120%. Since the start of the year, the rate of AMC “firing” has already reached 1,200%. AMC Securities continues to enjoy the popularity it has gained among the group of investors focused on the Reddit platform. The so-called “meme stocks”, a group that includes AMC or GameStop game store chain, have seen major increases since the start of the year.

According to data cited by CNCB, the rise in the value of AMC over the course of the week has already represented a loss of $ 1.3 billion for “short sellers”, who are betting on a falling stocks. This technique, which is used by investment funds, requires banks to borrow shares from some companies, and pay interest on this process. The bonds are then instantly sold, even if not in possession of the funds. Since the downside is high, those who resort to “shorting” expect lower quotes to buy the same volume of shares at a much lower price, returning the shares to the bank. Ultimately, the profit lies in the difference between the highest price at which they sold the borrowed bank’s shares and the lowest optimal purchase price for their subsequent delivery to the bank.

See also  Association against the public electric vehicle charging network

AMC has approximately $ 5 billion in debt. Due to the pandemic, which has forced cinemas to close and speeds up movie premieres in broadcast services, the company has seen revenue shrink. In addition to the pandemic conditions, which continue to force the number of spectators in the rooms to be reduced, the company is still facing competition from other companies in the sector and broadcasting services.