Wall Street analysts forecast 40% drop in average memes action, driven by AMC erasure

Wall Street analysts forecast 40% drop in average memes action, driven by AMC erasure


People walk past the AMC Empire 25 cinema in Times Square as the city continues its reopening efforts following restrictions imposed to slow the spread of the coronavirus on December 23, 2020 in New York City.

Noam Galai | Getty Images

Meme stocks are popping up this week, but Wall Street fundamentals analysts believe steep declines are ahead for these stocks.

Speculative trading of retail investors, many active on Reddit’s WallStreetBets forum, take these stocks of memes to new heights. Memes stocks include names like AMC Entertainment, GameStop, Blackberry and Bed bath and beyond.

AMC actions closed at a record $ 62.55 Wednesday, but analysts’ 12-month average target price is 91.8% lower, according to FactSet.

“AMC survived the pandemic but is coming out of it massively diluted and still over-leveraged,” Loop Capital Markets’ Alan Gould said in a note Monday.

“Basically the exclusive cinema window has shortened, fewer movies are hitting theaters, fewer industry-wide theaters have closed than expected, and streaming has become more prevalent,” Gould said. “Ultimately, the valuation will reflect the fundamentals.”

CNBC Pro took a look at how much Street predicts the prices of nine meme stocks will drop over the next 12 months. Looked:

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