Shares of AMC Entertainment have hit a bump in the road on Friday. The stock was down by a double-digit percentage but recovered some of those losses to a 6% decline at last check. The stock has been controversial for its lofty market cap of more than USD 26 billion despite a pile of debt on the balance sheet.

Wall Street analysts have been running for the exit signs on meme stocks as they grapple with sky-high valuations and questionable fundamentals. One research firm is now warning that the good times won’t last for AMC.

Wild Wall Street

Today’s selling could be in response to a negative development from research firm Iceberg Research, which has about 9,500 followers on Twitter. The firm’s mission is “revealing financial manipulation and accounting fraud.” And while it is not accusing AMC of fraud, it is calling out the WallStreetBets crowd, saying,

“There is a price for everything and we believe the pump has exceeded its average life.”

Iceberg Research revealed that it is “short AMC,” saying that the “fundamentals are obvious.” The firm pointed to sideways trading and “money lost in call options” to conclude that “the pump seems increasingly shaky.” Options are a bullish bet that a stock will rise, and trading volume in these contracts has been robust as retail investors look to squeeze out sophisticated traders.

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Financial analytics firm Ortex says that the short interest in AMC is currently 18.35% of the free float. Retail investors aren’t buying it and believe that the numbers should be higher. Either way, they are digging in their heels and looking to the future.

Setting the Record Straight

AMC Entertainment CEO Adam Aron is setting the record straight on a regulatory filing. The movie chain recently withdrew an S3 filing involving Silver Lake selling bonds back in January, and apparently, it caused a ruckus.

Aron addressed what he called “misinformation” spreading on the withdrawal, clarifying that it was purely an administrative move and was neither good nor bad for AMC.

Story continuesMovie Weekend

AMC’s sell-off comes just as the U.S. Independence Day holiday is about to get underway. Last weekend, an impressive turnout at the theatres buoyed the stock higher. If moviegoers return to the theaters once again, AMC Entertainment and retail investors alike could have the last laugh.

This weekend, AMC is hoping ticket sales of “The Boss Baby: Family Business” can keep the winning streak going. The original “Baby Boss” movie generated sales of USD 50 million at the debut.

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AMC is also gearing up for the release of “Chance the Rapper’s Magnificent Coloring World” concert film that will be coming to theatres soon.

This article was originally posted on FX Empire

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