AMC shares fall after research house discloses short position

AMC Entertainment shares fell as much as 12 percent on Friday after short-seller Iceberg Research tweeted that it had made a bearish bet against the theater chain operator’s stock.

The so-called meme stock dropped 8.9 percent at $49.40 after falling as low as $47.77 following Iceberg’s disclosure on Twitter that it had sold the shares short, which involves borrowing shares with a view to buying them back at a lower price to cover the bet. By just before 2 p.m. EDT, the stock remained down almost 6 percent. “Our position is based on the fundamentals of the company and the fact its stock price has been inflated by call options, which is always temporary,” said Arnaud Vagner, founder of Iceberg Research.