Shares of Torchlight Energy Resources (NASDAQ:TRCH) and AST SpaceMobile (NASDAQ:ASTS), two meme stocks recently favored by the Reddit crowd, are going "to the moon" today, rising 18.2% and 15.1%, respectively, as of noon EDT. In contrast, sentiment on AMC Entertainment Holdings(NYSE:AMC) stock is shifting into reverse, and the stock is down 9.3%.

Reddit has struck again.

Let's start with the bad news today. AMC stock is suffering from a Barron's report last night that pointed out that at the same time as the value of AMC's debt is rising, its stock price is falling. On the one hand, this sounds like good news -- AMC's bonds are trading close to "par," or face value, indicating that investors are pretty confident that given enough time, AMC will repair its finances and pay back its debt.  

The problem is how AMC plans to repair its finances, and the working theory appears to be: by selling a lot of shares, raising a lot of cash, and diluting its shareholders to the max. As credit risk agency CreditSights has commented: "sizable equity issuance is the only real avenue for AMC to right-size its over-extended capital structure." That's bad news for shareholders, and it's why AMC stock is falling.

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