Easy come, easy go. After posting a nice 7% gain yesterday, shares of AMC Entertainment (AMC -7.25%) are reverting to form and falling again, part of the one step forward, two steps back dance it has been performing for a year.
The movie theater operator's stock is down 4.8% at 10:36 a.m. ET to $17.59, or half the price it hit during its mini-rally at the end of last month, when CEO Adam Aron said he wanted to make more investments in financially troubled companies like the stake he took in gold and silver miner Hycroft Mining (HYMC -1.38%).
After the meme stock rally last year that brought AMC from the brink of bankruptcy to a high of almost $73 a share, the stock has lazily made its way lower again. It remains well above the penny stock status it sat at prior to small retail investors rallying around its shares, but those buyers who jumped on the bandwagon late in the game are nursing hefty losses.
Many remain steadfast in their commitment to the stock and the company, believing another rally will send shares soaring again if only this behind-the-scenes bad actor was exposed or that dark pool was highlighted.
Unfortunately, all stocks ultimately trade on their fundamentals, and while that time might not be at hand just yet for the movie theater stock -- shares continue to rise and fall based more on internet chatter and social media mentions than on its business -- it seems the day is not too far off.
While Aron has proposed a number of innovative ways to get AMC's business back on track (and a few that cause you to raise your eyebrows), the market seems to be losing its patience waiting for results.