The AMC stock price slipped on Monday even after the company published relatively strong attendance numbers. The shares declined by more than 6% to $43.05, which is about 40% below its year-to-date high of $72.28. It has a market capitalization of more than $21 billion.
AMC record attendance
AMC stock is falling even after the company reported an excellent weekend, where movie goers rushed to watch the Black Widow. The company said that more than 2.5 million visited its theatres from Thursday to Sunday. Its international operations saw more than 650,000 people.
The company added that eight of the ten busiest theatres in the country were owned by AMC. This performance provides further evidence that there is a hunger for outdoor events and quality movies.
AMC shares declined partly because of the overall sell-off of meme stocks. Indeed, shares of other meme companies like GameStop, Clover Health Investments, and Wish were all in the red.
Further, the stock also declined partly because of the rising number of Delta variant cases in the United States, Europe, Japan, and other countries. Some countries like Germany and France have added some restrictions. Similarly, in Australia, New South Wales (NSW) added new restrictions on movement while Japan unveiled a new state of emergency. So, what next for the AMC stock price?
AMC stock price analysis
Turning to the daily chart, we see that the AMC shares have done well this year. The stock has jumped by more than 2,137% from the lowest level since December. This is notable since the S&P 500 index has jumped by less than 15% this year while other cinema companies like Cinemark and Cineworld have barely moved this year.
The chart also shows that the AMC stock has formed a top, where it has struggled moving above the small descending trendline. The stock has also found a support at the $39.30 level. It is also being supported by the 50-day and 100-day moving averages.
Therefore, in my view, the stock will likely keep falling as bears target the next important support at around $36.90, which was the highest point on May 28. This prediction will be invalidated if the stock manages to move above the descending trendline.
Also, it is worth noting that the stock could surprise since its performance is not driven by fundamentals but by activity by traders in social media.