8c1) AMC said on Thursday that it did not know "how long these dynamics will last.
"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," it said.
Analysts have also warned that the stock may be overvalued due to the rise of streaming and competition from other entertainment companies.
David Trainer, chief executive of investment research firm New Constructs, said: "AMC's business was trending in the wrong direction even prior to the Covid-19 pandemic... We think AMC's stock is worth $0 per share, given its weak earnings, dilution from recent stock offerings and mountain of debt."
Despite that, AMC has been among the biggest winners from a spike of interest in meme stocks, fuelled in part by a new generation of social media-centric small traders.
On Wednesday, #AMCstock was trending on Twitter in the US as investors discussed their holdings and the share price nearly doubled.
The Securities and Exchange Commission chairman Gary Gensler said at a hearing last month that it will report on issues around volatile "meme" stocks this summer.
He said that although online forums such as Reddit can serve as a "real community", he is concerned about "the risks that nefarious actors may try to send signals to manipulate the market".
"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," it said.
Analysts have also warned that the stock may be overvalued due to the rise of streaming and competition from other entertainment companies.
David Trainer, chief executive of investment research firm New Constructs, said: "AMC's business was trending in the wrong direction even prior to the Covid-19 pandemic... We think AMC's stock is worth $0 per share, given its weak earnings, dilution from recent stock offerings and mountain of debt."
Despite that, AMC has been among the biggest winners from a spike of interest in meme stocks, fuelled in part by a new generation of social media-centric small traders.
On Wednesday, #AMCstock was trending on Twitter in the US as investors discussed their holdings and the share price nearly doubled.
The Securities and Exchange Commission chairman Gary Gensler said at a hearing last month that it will report on issues around volatile "meme" stocks this summer.
He said that although online forums such as Reddit can serve as a "real community", he is concerned about "the risks that nefarious actors may try to send signals to manipulate the market".
8c2a) Follow Matt Levine at Bloomberg for humorous and informative analysis on financial markets, but specifically the recent spate of meme stocks and the cult of Elon Musk.
8c2b) but I do feel like a healthy dose of nonsense is what is needed here. The way to understand AMC is to abandon your conscious mind for a while and just float on a sea of vague associations. How boring to apply traditional notions of corporate finance or supply and demand to AMC. AMC is a new thing.
8c3) Even when cultural change happens swiftly, it's hard to be aware of what is actually changing and how it will affect the future. In some ways, the future ends up becoming subtly weirder than could be imagined in the present.
Um...but the idea that were living in some sort of science fiction scenario is becoming more salient
Yes. It's a bit of a cliche to claim the future is happening in our time. Not much different than wearing a sandwich board declaring the end is near. But it seems as if the COVID pandemic produced forces that superheated the rate of change.
The internet has been a latent agent for change since its widely adopted use. In actuality, it hasn't done much more than prove Marshall McLuhan's point that the medium is the message. In the sense that there wasn't much more there than what appeared on the surface–a grand web of mutual communication, full of humans being human.
Yes. It has changed our cultural reality in some subtle and also not so subtle ways. But now it's getting truly weird.
The Occupy Wall Street movement did not accomplish much more than giving some bored kids a vacation from reality. Granted, I am being reductionist. But take meme stocks as an example. Even if concentrated in a few isolated firms, they are driving financial markets.
Value is a concept of socially constructed belief. It's utility is based on what we believe that utility might be. The best tool for the job also requires an awareness of how to use the tool with efficiency and skill. Otherwise, it's just an inert artifact.
For benefit or detriment, the people have discovered the power of the internet. File sharing, black hat hacking, 4Chan, QAnon, all these were arguably pranks. Children playing in the shallows. But from potentially terrifying ransomware hacks to the populist uprising of r/WallStreetBets, the pandemic seemingly produced enough time and boredom to turn the internet into a true force for change.
Force for change. How often that phrase, or something like it, is used as a beacon of hope. An indicator that this place we are in won't last forever. that the future is brighter. I tend to think so. But we should also be careful what we wish for. The ripples of the pandemic have only begun to show.
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