Investors began backpedaling from AMC Entertainment Holdings Inc. after the movie-theater operator said that it plans to sell more stock — while simultaneously cautioning potential buyers of its shares that they might lose all their money, the Wall Street Journal reported. Shares of AMC finished Thursday’s wild trading session down 18% at $51.34 after almost doubling in value the previous day. The stock appeared set to continue its run in Thursday’s premarket trading, notching double-digit percentage gains. The momentum reversed, though, once the company filed with regulators to sell more than 11 million shares and warned against investing in its stock. AMC shares dropped as much as 40%, then later recovered all of those losses before sliding again. The company’s shares had rocketed in recent days — extending their advance this year by 2,850% before Thursday’s decline — after the company sold a chunk of new shares to the hedge fund Mudrick Capital Management LP. The company had leaned into its sudden popularity with individual investors by offering popcorn to shareholders who visit an AMC cinema this summer. (Subscription required.)
