When will AMC rebound?
Later this month will mark the first-year anniversary of AMC’s all-time high of $72 per share.
The stock has been on a steady decline since it reached this ATH despite more investors coming in to buy the stock.
Approximately 80% of AMC’s float was owned retail investors during the surge.
Now more than 90% of retail investors own the float.
But a bear market knows no upside, no good news, or heavy buying pressure.
So, how close is AMC to a rebound?
Let’s discuss it.
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Is AMC doomed?
AMC just announced an incredible Q1 earnings call for 2022 where the company raised more than $1.4 billion in liquidity.
The movie theatre chain seated 39 million guests in Q1 and earned $785.7 million in revenue.
CEO and President Adam Aron reported AMC had its best Q1 in two years.
Not to mention, the company was able to repay $45 million of deferred rent reducing their balance to approximately $272 million.
They plan to reduce the deferred rent by another $125 million by the end of the year.
So, is AMC doomed?
See, a bear market doesn’t take any of this into consideration.
If the suits need the markets to be on a downtrend, they’ll be on a downtrend, momentarily that is.
So, if we’re going to play their game, we’ll just have to sit tight until we begin to see a reversal again.
Can Adam Aron do anything about what’s happening to AMC stock?
Unfortunately, Adam Aron and any other CEO doesn’t have any power over how the stock of a company moves.
I’ve always pictured nerds behind the scenes looking at the boss for confirmation on whether they should move a stock down or up based on business or economic news.
Jokes aside, all Adam Aron can do is focus on AMC’s fundamentals to hopefully convince these ‘bosses’ the stock is not worth shorting to the earth’s core anymore.
Notice how he always addresses the suits in every earnings call, it’s for a good reason.
And finally, we’ve seen a little bit of praise on AMC’s Q1 earnings this year, but it’s not enough.
There’s an older generation of folk running our system that cannot see what ‘apes’ or Adam Aron see yet.
All this means is it’s going to take time.
Are you holding unrealized losses?
If you’re holding unrealized losses, you’re going to have to make a decision for yourself.
Will you sell scared during a bear market?
Shoutout to Dany on Instagram when he said, ‘scared money don’t make no money’.
Or will you weather this market and wait for AMC to rebound?
Because stocks don’t go down forever, they eventually bounce back.
AMC shareholders are here to make a big trade, right?
So, wait, and make a big trade.
Or cash out and get back in when AMC begins to surge again because it will.
It’s your choice.
How close is AMC to a rebound?
The entire market is having a challenging time finding a bottom.
This leads me to believe AMC is not done downtrending, but oh boy would I love to be wrong here.
SPY stock (S&P 500), which tracks the top 500 companies in the U.S. can’t seem to find the brakes either as it continues to pull the entire market downhill.
There are currently no signs of resistance levels in the market.
And for this reason, AMC might not be close to seeing a rebound so soon.
But it doesn’t mean AMC won’t rebound at all – the entire market will eventually go through a reversal where stocks will begin to trend upwards again.
How long will this take?
Only time will tell.
What you can do in the meantime is plan, strategize, and execute.
Focus on your financial goals, your income goals, your family goals.
Despite this dreadful bear market, learn to make every day a great day.
And if you aren’t earning money trading options yet, I actually teach you how to do it here so you can hedge against your unrealized losses in the interim.