In a significant setback, the shares of AMC Entertainment Holdings Inc. plummeted by 8% on Tuesday, marking the stock's largest one-day percentage decline since November 9, 2021, when it fell by 13.7%.

As the movie-theater chain and a favorite of meme-stock enthusiasts, AMC is also on track for a two-day losing streak after closing the previous session with a 3.6% drop. This decline comes in contrast with the broader market, as the S&P 500 index experienced a mere 0.2% decrease on Tuesday.

AMC's rivals, Cinemark Holdings Inc. and Imax Corp., also felt the effects of the slowing market, experiencing 1.7% and 1.2% declines in their stocks, respectively.

This recent decline follows a period of tremendous volatility and excitement surrounding AMC, fueled by Reddit-driven retail investors who rallied behind the stock earlier this year. Dubbed as one of the "meme stocks," AMC experienced a meteoric rise, igniting a frenzy among retail traders that sent the stock soaring to unprecedented heights.

However, as the initial hype surrounding meme stocks begins to fade, AMC's shares have faced increasing pressure. The company continues to grapple with the long-term effects of the COVID-19 pandemic on the movie-theater industry, as well as the ongoing uncertainty surrounding the return of moviegoers.

Despite this recent decline, AMC's stock still remains significantly higher compared to early 2021 levels. The company's ability to maintain a loyal base of retail investors and navigate the challenges ahead will be key in determining its future prospects.

Investors will be closely monitoring AMC's performance in the coming days to gauge whether this decline is merely a temporary setback or the start of a longer-term trend for the meme-stock darling.