What In The World Is Going On With AMC Stock?

AMC Entertainment Holdings Inc AMC shares are trading lower by 12.3% to $9.64 Friday morning, depsite a lack of company-specific news for the session. The stock may be pulling back following recent momentum in anticipation of the debut of the Taylor Swift Eras Tour concert film.

On Wednesday, Swift announced on X that AMC will offer early access to the Eras Tour concert film on Thursday in the U.S. and Canada due to high demand.

AMC Down Nearly 70% In 2023

AMC stock has fallen nearly 70% in 2023 amid the company commencing trading under a 10-to-1 reverse split arrangement in August. The company's AMC Preferred Equity Units, formerly traded as APE, also underwent conversion into common stock in August.

A reverse stock split doesn't change the fundamental value of the company, but it often leads to a higher per-share price. This can be seen as a negative sign by investors because it may imply that the company's stock was struggling and needed to artificially inflate its price to avoid delisting. This perception can lead to selling pressure, causing the stock to fall.

Historically, reverse stock splits are often associated with financially troubled companies. AMC's decision to implement a reverse split could remind investors of the company's past financial difficulties, leading to concerns about its long-term prospects.

See Also: AMC CEO Adam Aron Got Caught Up In Blackmail Attempt After Sending Sexually Explicit Photos

According to data from Benzinga Pro, AMC Entertainment has a 52-week high of $91.50 and a 52-week low of $7.05.