Get All Access for $5/mo

AMC's Wild Ride Continues, Stock Sinks After Record High The world's biggest theater chain says it's unsure how long the volatility will last.

By Euni Han

Opinions expressed by Entrepreneur contributors are their own.

China News Service | Getty Images

Just a day after soaring 120% to a new high, AMC stock dropped 17% in early Thursday trading after the company announced plans to sell up to 11.6 million shares, Business Insider reports.

Related: AMC Continues to Ride Social Media Hype as Share Prices Skyrocket to 50% Increase

AMC has reached an agreement with investment bank B. Riley Securities and Citigroup Global Markets to act as selling agents, according to an SEC filing. AMC plans to use net proceeds from the sales for general corporate use which can include capital expenditures or repaying or refinancing debt. The company also warned investors about possible losses:

"Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment."

Related: Are These Meme Stocks Going To Blow Up Again?

On Wednesday, however, AMC shares closed 95% higher on retail trading from Twitter and Reddit's WallStreetBets. This is despite an 8.5 million share dump from hedge fund Mudrick Capital, which bought and sold shares in the same day, according to Bloomberg.

AMC was one of the names that made headlines in January when retail traders on Reddit piled into stocks like GameStop to short squeeze hedge funds and cause them steep losses. And AMC says the rollercoaster ride may not be over just yet:

"We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last."

AMC also recently launched a website, Investor Connect, in an effort to reach those online investors who have boosted its stock --- offering a free large popcorn and invitation to special screenings for those who sign up.

Related: Top Consumer Discretionary Stocks To Buy Now? 4 To Know

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.