AMC (NYSE: AMC) plunged 5.70% as waning meme stock momentum and strategic initiative scrutiny shift investor sentiment

AMC Entertainment Holdings Inc. (NYSE: AMC) plunged 5.6995% in pre-market trading on December 18, 2025, as investor sentiment shifted amid waning momentum for meme stocks and heightened scrutiny of its strategic initiatives.

Recent financial disclosures revealed a mixed performance, with revenue rising to $4.63 billion but operating losses persisting at an EBIT margin of -2.9%. While the company’s enterprise value remains at $8.82 billion, reflecting market optimism about long-term growth, short-term profitability challenges continue to weigh on investor confidence.

Market participants are closely watching AMC’s pivot toward digital streaming and cost-cutting measures. The firm’s efforts to expand streaming offerings and streamline operations have drawn attention, though analysts caution that execution risks and competitive pressures in the entertainment sector could delay tangible results.

Speculation around potential mergers and acquisitions has also fueled volatility, with investors weighing the potential for sector consolidation against execution uncertainties. However, without concrete developments, the stock’s decline underscores a broader shift in risk appetite as traders reassess exposure to speculative retail-driven assets.