Users on social media have also shared screenshots of Robinhood reporting AMC’s market cap at $7.49bn this Friday.
However, this is not the first time Robinhood reports these types of discrepancies, though some investors theorize this could be ‘leaked’ information.
In March, Robinhood reported AMC with a $417 billion market cap putting the movie theatre chain up there with Facebook at the time.
During the time of these reportings, investors were able to gain the attention of AMC Entertainment CEO Adam Aron, which responded to the discrepancies.
The CEO said that data sources were under review for accuracy for several sources, including MarketWatch, which at the time were reporting the company’s equity APE (NYSE:APE) of having a 93.79 billion market cap.
“Market Watch currently showing 93.79 billion APEs outstanding. Clearly WRONG, wildly so. We are calling them now demanding this get corrected immediately.
Also reviewing many other data sources to check for accuracy. So curse-word-here irresponsible that they publish false info,” said the CEO in March.
The uproar at the time led shareholders encouraging the CEO to begin looking into the possible manipulation of the movie theatre’s stock.
In May, CEO Adam Aron threatened to sue Robinhood when the company falsely reported on its platform that AMC Entertainment had filed for bankruptcy.
“I am so Ducking angry about this. They are either incompetent or evil, and either is absolutely inexcusable. Obviously, there is no truth to their postings. Outrageous behavior. I have already asked our lawyers if we can sue the Dastards. #IncompetentEvil”
The CEO even went to the length of creating a poll asking for shareholder opinion, to which majority of investors supported.
Are these AMC market cap reportings simply discrepancies and glitches in Robinhood’s system? Or is information slipping through? I’d love to hear what you think. Leave your thoughts in the comment section down below.
Other AMC Entertainment News
On Thursday, AMC stock fell more than -26% while APE fell nearly -18% despite the fundamental upgrade.
On Friday, shares of AMC Entertainment fell an additional -13%.
Investors have shared a mix of emotions on Twitter, urging CEO Adam Aron to release a public statement on the stock’s performance, see below.
Total shares owned by institutions increased in the last three months by 10.96% to 154,378K shares, according to Fintel data.
However, “the put/call ratio of AMC is 0.49, indicating a bearish outlook,” says Nasdaq.
Exact definitions vary between brokerages, but an underperform rating is worse, in general, than “neutral” but better than “sell” or “strong sell.”
Neutral is assigned to a stock that is expected to deliver results that match the broader market.
Underperform is a stock that will likely perform slightly below par: seeing greater losses in a down market and below-average gains in an up market, per Investopedia.
AMC’s reverse stock split has left shareholders with 10x less shares with the company stock trading 10x higher.
Up next is the conversion of APE shares into AMC common stock which will occur on Friday August 25.
The litigation settlement will then take place on Monday, August 28.
AMC Entertainment has now secured the ability to raise billions of dollars from retail investors despite plunging share prices.
Investors have once again saved the company, but at what cost?
AMC’s upgrade from underperform to neutral is a positive outlook, but unless the news translates over to the company’s stock price, investor confidence is at a standstill.
What are your thoughts on the movie theatre’s current state?
Leave your thoughts in the comment section down below.
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