AMC Stock Price Falls Despite Strong Earnings Report

AMC Stock Price Falls Despite Strong Earnings Report
AMC slides despite bullish Q4 news and trajectory

AMC stock price falls the first week of March by almost 8%.

AMC’s volume has gone up to an average of now 50.2 million according to Yahoo Finance.

The company just announced Q4 results for 2021 and reported positive cash flow for the first time in two years.

Fidelity’s stock research shows AMC has more than 3 times the buy orders than sell orders.

More on that below.

Welcome to – today I’m going over AMC’s weekly performance for the first week of March. Here’s your AMC stock update.

Let’s dive right into it!

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AMC stock falls and consolidates in $16 range

AMC stock is down nearly 8% the first week of March.

We saw highs of up to $18.25 per share; last week the stock saw highs of around $19 per share.

Despite Friday being a lower trading volume day, Fidelity’s stock research shows us nearly 4 times the people bought the stock when comparing it to sellers.

buy to sell ratio AMC stock
Buy to sell ratio AMC stock – Fidelity Stock Research

AMC continues to be a heavy candidate for a short squeeze play due to its growing short interest, more on that below.

With inflation rising, more and more people are taking their chance at momentum stocks such as AMC and GameStop.

AMC’s float is currently owned by 90% of retail investors according to CEO and President Adam Aron.

This is a 10% increase from last year’s 80%.

While corporate media says that the community has thrown in the towel, this simply isn’t true according to the data.

How much is AMC shorted at the moment?

how much is AMC shorted

AMC Entertainment stock currently has a reported short interest percentage of 20.86%.

Utilization is at 100 meaning every single share is out on loan (borrow).

So, overall AMC continues to be heavily shorted in 2022.

In fact, there’s no major difference in short interest from when AMC surged to $72 per share in 2021 when it was only at 20%.

It’s higher today meaning the stock may still squeeze shorts from their positions.

AMC stock price falls this week due to continuous and unregulated shorting in the market.

Global news of the Russia-Ukraine conflict is affecting the entire markets.

This also puts AMC stock under more pressure despite the positive earnings report.

AMC 2022 trajectory

AMC 2022 Prediction
AMC’s price has been going down since its runup to $72 per share

AMC Entertainment CEO and President Adam Aron announced during the Q4 earnings call that the company now has positive cash flow.

The theatre chain has significantly paid down its debt and most of their deferred rent from the pandemic.

Looking back at AMC’s earnings history, we see that the company has progressed each quarter.

Adam Aron said the company is estimating to double its revenue in 2022 from 2021.

While yes, it’s true that the demand for online streaming has gone up, the demand for experiencing a movie at the cinema has also gone up.

Call me crazy but I believe that at some point going to the movie theatres is going to be considered to be a luxury.

The movie theatre leader is looking to close on licensing deals to provide guests with live concerts and sports events on the big screen.

The movies aren’t going to be what we once knew them to be.

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1 Comment

  1. Frank Nez

    Let’s start a discussion!

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