Ever since the COVID-19 days of the meme stock saga, a couple of companies have fallen into a cycle that has been repeating since then. Investors get excited about a potential chance to multiply their wealth, only to find that what they have invested in doesn’t actually justify the value they paid, much less a higher one that will bring them any profits. This episode seems to be happening again.
The GameStop Corp. (NYSE: GME) saga that started the retail sector meme stock mania of the early 2020s spread to another name with a similar setup. Shares of AMC Entertainment Holdings Inc. (NYSE: AMC) followed suit in the way that investors bought into management’s fantasy pitch for a turnaround and revolutionizing movie theatres, even though five years later, nothing has happened.
