AMC Entertainment stock rose +18.86% on Friday, a day after the movie theatre chain company beat Q2 earnings.
The stock is now up 54.78% on the 5-day trading week.
Shareholders are bracing for a long-awaited upwards break after many months of downtrend.
Is AMC Entertainment stock about to take off again?
Let’s discuss it below.
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AMC jumps after bullish Q2 earnings
AMC Entertainment announced it had its best Q2 in 3 years, up 61% from its previous two years according to CEO Adam Aron.
The company was able to seat more than 59 million guests worldwide in Q2 alone, due to massive titles such as Doctor Strange: Multiverse of Madness and Top Gun: Maverick.
But it’s the new AMC stock dividend that has everyone raving about Q2 earnings.
Shareholders are going to be receiving one $APE share for every $AMC share they hold.
You’ll have to be an AMC shareholder by the 19th of August to get yours straight from your broker the following trading week.
This new stock will not dilute AMC Entertainment stock as $APE is its own security, separate from AMC stock.
Shareholders will be able to buy, sell, and trade the stock like any other security.
In an effort to tackle synthetic shares, here’s what CEO Adam Aron had to say:
The CEO seems to be taking this ‘pounce’ much more fundamentally than retail would have desired.
But is that even a bad thing?
Related: AMC Q2 Earnings Highlights (2022)
Wall Street loses grip
Analysts on Wall Street have been prophesizing the fall of AMC theatres for almost two years now, using mainstream media to mislead investors from buying the stock.
Had you listened to The Fool, Yahoo Finance, and other FUD platforms, you would have missed this opportunity for the third time.
But do no fret, as a big technical breakout could send AMC retesting the same levels it broke last year, sending AMC’s share price to another all-time high.
Short sellers will have to make a decision to either continue betting against this massive wave, or switch courses and ride with it.
Volume has begun to pick up for AMC, reaching 125.7 million on Friday alone.
Just five days ago the stock was trading at $14.33 per share ending the trading week at $22.18 and $22.45 after hours.
There’s no doubt the stock has begun a bullish trend.
The question is, will retail investors be able to continue to build the momentum leading into next week to break AMC’s next technical level?