Meme Stocks Crash Then Rebound After AMC Raises $587 Million From Investors

Meme Stocks Crash Then Rebound After AMC Raises $587 Million From Investors

Share to Linkedin Shares of AMC Entertainment plummeted Thursday morning alongside a slew of other recently resurgent meme stocks after the company cautioned investors that its stock has become massively overvalued, but the volatile bunch pared back losses by mid-afternoon after AMC announced it successfully completed a massive cash raise at meteoric prices. AMC plummeted as much as 35% Thursday, while GameStop tanked 13%. AMC stock cratered as much as 40% Thursday after the company said it was looking to raise cash by selling nearly 11. 6 million shares at market prices while also cautioning people to only buy its stock if they're willing to risk losing all their money. However, in the early afternoon, AMC announced it had successfully completed the offering, raising $587. 4 million in new capital by selling shares at an average price of $50. 85; the stock immediately reversed course and is up 3% to $66. 45, as of 2:10 p. m. EDT. After AMC's initial rout, shares of Bed, Bath & Beyond, which skyrocketed 62% Wednesday, plunged as much as 26%, and GameStop, the top-performing meme stock during the trading frenzy in late January, fell nearly 13%; they're now down 18% and 6%. Even