In a surprising twist for the movie theater industry, Cinemark Holdings Inc. (NYSE: CNK) has surged ahead of AMC Entertainment Holdings Inc. (NYSE: AMC) in market capitalization, leaving AMC’s massive retail shareholder base bewildered and frustrated.
Despite AMC’s 10% stock price surge today to $3.24, driven by optimism around upcoming blockbuster releases, Cinemark’s stock has consistently outperformed, trading at levels that reflect a stronger financial position and market confidence.
Or does it?
This development has sparked heated discussions among AMC’s loyal investors, many of whom see Wall Street’s influence as a deliberate attempt to suppress the stock, despite its dominant market share and cultural prominence.
Cinemark’s Quiet Rise Over AMC
As of May 22, 2025, Cinemark’s stock price hovers around $32,44 with a market capitalization of $3.73 billion, while AMC, despite its recent rally, trades at roughly $3.41 per share, equating to a market cap of $1.40 billion.
This gap is particularly striking given AMC’s status as the world’s largest movie theater chain, operating 950 theaters and 10,600 screens across the U.S. and Europe, compared to Cinemark’s 533 theaters and 5,974 screens, primarily in the U.S. and Latin America.
AMC’s dominance in key markets like New York City, Los Angeles, and Chicago, along with its 52% U.S. population coverage within 10 miles of its theaters, underscores its industry leadership.
Cinemark, the third-largest U.S. theater chain, has capitalized on a more conservative financial strategy and operational efficiency to win Wall Street’s favor, according to TheStreet.
In Q4 2024, Cinemark reported a robust 27.5% revenue growth and returned to profitability with a net income of $188.2 million for 2023, according to The Wrap.
This was during a time when AMC posted a net loss and faced ongoing liquidity challenges.
Cinemark’s lower debt-to-EBITDA ratio of 4.3x, compared to AMC’s 14.7x in 2019, has also positioned it as a safer bet.
From a fundamental perspective, Cinemark takes the win here.
However, AMC Entertainment has a massive fan and shareholder base that took its shares from $6 (at the time I was reporting short interest) to a whopping $72 per share.
Surely this momentum has to mean something, right?
AMC’s Meme Stock Legacy and Retail Frustration
AMC’s shareholder base, largely composed of retail investors who propelled the stock to unexpected heights during the 2021 meme stock frenzy, is perplexed by Cinemark’s outperformance.
The 2021 short squeeze saw AMC’s stock soar from $6 to $72 respectively as retail investors rallied against short sellers betting on the company’s bankruptcy.
This movement, fueled by social media platforms like Reddit and Twitter at the time, now X, transformed AMC into a cultural phenomenon, with investors dubbing themselves “Apes” and pledging loyalty to the company’s survival.
Yet, despite this fervor and AMC’s larger scale, its stock has struggled to regain its former glory, trading down 83.97% in the past 5 years.
On platforms like X, AMC shareholders have expressed outrage, pointing to perceived injustices.
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Wall Street’s Vendetta
Many AMC shareholders attribute the stock’s underperformance to Wall Street’s bias, citing short selling and media narratives that favor Cinemark.
In April however, AMC CEO Adam Aron stated that market manipulation is not to blame for the company’s performance.
His remarks counter the popular narrative of market manipulation, emphasizing critical facts that suggest the industry is still grappling with the repercussions of the COVID-19 pandemic.
Still, Cinemark, being in the same industry, would see this turmoil hit its stock if that were the case.
In 2022 Aron also shut down the narrative behind naked short selling, stating:
“Inbound tweets ask over and over for a share count.”
“..Some of you believe the count is much higher.
As I’ve said before, we’ve seen no reliable info on so-called synthetic or fake shares.”
In early 2021, AMC’s short interest reached over 79% of its float, fueling the meme stock rally that caught hedge funds off guard.
While Cinemark also faces short interest (approximately 21.32% of its float), it has not attracted the same retail fervor, allowing it to avoid the volatility that has defined AMC’s trading.
Critics argue that Wall Street analysts, such as Wells Fargo’s Omar Meijas, who earlier upgraded Cinemark to a “buy” with a $23 price target, are selectively optimistic about Cinemark while downplaying AMC’s potential, despite both companies benefiting from the same industry tailwinds.
The way AMC is portrayed by mainstream media has always been seen as a deceitful strategy to attack the company and its shareholders who once brought Wall Street to its knees.
However, AMC’s financial challenges, including its massive debt load have not helped its case.
The company’s repeated equity issuances, including the controversial AMC Preferred Equity (APE) shares in 2022, have severely diluted shareholders, eroding confidence among institutional investors as well.
In contrast, Cinemark avoided significant dilution, with shares outstanding increasing only 0.05% in 2020, and has maintained positive operating cash flow, even during the pandemic’s toughest years.
While AMC has had negative analyst coverage, the companies high debt and dilution have been seen as self-inflicted wounds, with one Reddit user noting, “AMC’s biggest bad decision was diluting the stock at extremely low prices.
It’s as if they were intentionally helping short sellers.”
Also Read: SEC Now Responds to Retail Investors on Illegal Manipulation
Industry Recovery and Future Prospects
Despite the massive differences in share price, both AMC and Cinemark are riding a wave of industry optimism, with box office projections bolstered by major releases and a recovering post-COVID audience.
Cinemark’s strategic focus on suburban markets, lower ticket prices, and premium offerings like heated recliners and diverse concessions has driven higher attendance and market share gains.
AMC, meanwhile, has leaned on its larger footprint and premium large format (PLF) screens, which accounted for 29.2% of domestic admissions in Q1 2023, to boost revenue per patron.
For AMC’s retail investors, the disparity between their company’s market share and stock performance feels like a betrayal.
They argue that AMC’s scale, brand recognition, and recent efforts to reduce debt should translate to a higher valuation.
Yet, Wall Street’s focus on fundamentals like debt levels and profitability continues to favor Cinemark, which has emerged as a ‘background’ post-pandemic success story.
As the movie theater industry rebounds, both companies stand to benefit.
However, AMC shareholders will continue to face an uphill battle against dilution fears and a skeptical Wall Street.
But I’m curious to know what you think — leave your thoughts below.
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