AMC stock down more than 7% at open as APE shares soar – Yahoo Finance

Yahoo Finance Live’s Jared Blikre discusses the decline in stock for AMC following the entertainment company’s plans to sell stock.
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JARED BLIKRE: And we want to get to AMC. That’s also trending this morning. The stock is down 7.8%. That’s hot off the news that– that was last week that the company is planning to sell stock to a private investment firm, The Movie Operator. Now, announced a $110 million equity capital raise and said it was seeking a 1 for 10 reverse split of its common stock.
And we were talking about this last week, Julie. I’m gonna load our meme page on the YFi Interactive here just so we can see what’s going on today. And let me sort by performance. Just– it doesn’t look like we have a lot of green here. I’m sitting out of the corner of my eye more red than green.
At the bottom of the pack, we have AMC, the class A shares, that’s down over 7%. And then, meanwhile, in the upper left, we got those APE shares.
JULIE HYMAN: Oh, jeez.
JARED BLIKRE: That’s up 15%.
JULIE HYMAN: [LAUGHS]
JARED BLIKRE: We were covering that. Because of the curious peculiarities in the way share classes are constructed, because of the fact that the company could not authorize any more class-A shares because they didn’t have the votes for it, well, they had to do this, they had to create these APE shares. And now, they’re trying to equalize them. So that’s what’s going on there.
We take a look at five-day performance. We’re gonna see, my guess is, yeah, we’re gonna see APE shares up 200%. That’s as they kind of come back into parity with the class-air shares. So some math going on there but not a whole lot of fundamental news.
JULIE HYMAN: Well, that is not unusual when we’re talking about this particular company. And we’ve also talked about that AMC shares are now back below where they were before the meme stock craze began. So that’s something that we saw happen last week. And that movement does continue.
So we’ll see what happens with the– on the retail investing front going into 2023. That’s something else that I’m gonna be watching quite closely, the flows of those dollars and where they’re going.
JARED BLIKRE: Yes, I– I’m gonna be– the story of how the retail investor has coped with the pandemic with the stimulus checks having seen those gone– a lot of those gone up in smoke in crypto and meme stocks. I find the plight of the retail investors, those who are still sticking around, to be an incredible story.
It’s always fascinating to me who’s coming into the market at various times. And the retail investors, in my– in my opinion, have not been through a harder two to three years than they have in the last three years. So anybody who’s still standing around for 2023, it’s all upside from here, guys.
JULIE HYMAN: Let’s hope.
JARED BLIKRE: I hope.
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