Why is AMC surging? The movie theatre chain stock has surged more than +48% in the past 5 trading days.
The stock is up more than +30% since our last ‘buy’ signal on the blog back in late October.
And should you buy AMC stock today?
Let’s look at the latest AMC stock news and updates this week.
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AMC Volume Surges Alongside Price
AMC’s trading volume on Tuesday rose to 43.9 million, up 12.8 million from the average trading volume of 31.1 million.
Volume has always played an important role in the company’s share price.
Retail investors proved this last year when shares soared from $2 to $20 in January and from $14 to $72 in June of 2021 based on heavy buying.
Time and time again we see AMC surge in price when volume peaks past its average trading volume.
While dark pools do indeed suppress AMC’s share price from reflecting full buyer’s demand, when purchased in mass, retail has power.
Even if they’re only small swings, they get the needle moving which could force shorts to close their positions, initiating a short squeeze.
AMC beat earnings expectations for Q3 of 2022 and saw big revenue from Black Panther: Wakanda Forever.
Black Panther: Wakanda Forever scored the second biggest opening of the year behind Doctor Strange: Multiverse of Madness with a $300 million global launch and $180 million domestic debut.
It’s safe to say AMC Theatres is far from going bankrupt like Wall Street likes to predict.
But does this mean AMC stock is a buy?
AMC Reports $0.22 Loss Per Share ($227 Million)
AMC Entertainment reported a $0.22 loss per share, or $227 million during Q3 earnings.
The company’s shares have declined dramatically during the bear market though investors seem to be gaining confidence again as the S&P 500 begins to bring the entire markets up again.
Despite general market sentiment, AMC Entertainment has been releasing nothing but bullish news all year.
Some analysts have even gone to say that share prices are so low now from their high that now could be a great time for value investors to buy into the company stock.
And I agree.
Whether or not the markets have hit a bottom yet, AMC Entertainment continues to be a retail favorite with a strong CEO who’s willing to do whatever it takes to raise capital and move the company forward.
But I’m curious to know what you think.
How are you feeling about AMC Entertainment stock today?
Leave your thoughts in the comment section down below.
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