AMC stock finished up +5.45% on Friday.
The largest movie theatre chain in the world is down 55% this year as the DOW and SPY also face major pushback.
Stocks have fallen year-round, and AMC is no exception.
However, it’s important to remember that unrealized losses aren’t really losses.
Majority of companies have also had rocky earnings for 2022’s first quarter.
But how is AMC looking for next week?
Let’s discuss it.
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AMC Q1 earnings call 2022
AMC Entertainment is just announced their Q1 earnings call for 2022 earlier in May.
The company has beat every quarter earnings since 2021 as more guests attended AMC movie theatres.
AMC announced earlier this year that as of Q4 of 2021, the company now has a positive EBITDA.
EBITDA provides investors with a snapshot of a company’s overall financial performance.
Fundamentally speaking, it’s a massive win for AMC Entertainment as a business.
AMC Shareholders were able to arm the company with more than $1.8 billion in liquidity for Q4 of 2021 and ended Q1 of 2022 with $1.7 billion.
CEO and President Adam Aron said this $1.7 billion will provide AMC with more security and flexibility to go on the offense.
Given the number of titles that have been released so far (and upcoming), AMC should have no trouble dominating in 2022.
AMC’s Q1 earnings will matter later
Despite AMC’s incredible improvement in the past year (and this year), earnings calls played a very little role in the company’s overall stock price.
AMC’s EBITDA improved this new year.
Analysts believed AMC and the entire movie theatre industry were going to collapse after the Covid lockdowns, but AMC proved them wrong.
AMC hosted approximately 60 million guests in the United States, Europe, and Middle East in Q4 alone.
And as Covid restrictions have been lifted in 2022, people are feeling safer attending the movies and other public events today.
This bear market is tanking stocks despite good or bad news as majority of the market mimics the SPY, down more than 15% this year.
What will truly move the markets is the transition from bear to bull market.
But if you haven’t heard of executive order 14032 yet, it’s incredible.
And I’ll touch more on it below.
Executive order 14032 goes into effect soon
If you haven’t read about executive order 14032 yet, you have to take time to read about it soon.
This order is going to affect the markets in an incredible way.
We recently saw small uptick in AMC after hours when it released positive earnings for Q1 of 2022, but it wasn’t able to maintain it due to the pull of the market.
AMC finished green on Friday, up 5.45%.
What is next week looking like?
SPY stock has hit $400 per share quite a few times, which leads me to believe it’s possible this area could be a strong level of support.
For an entire week straight, this level played a very important role, so we’ll have to keep an eye out on where things go from here.
A lot of the market follows the trajectory of the SPY (S&P 500), so we could very well see AMC consolidate for a while, mirroring the rest of the market.
If the SPY begins to make a break and move upwards, we could very well see AMC start a similar pattern, and vice versa.
But regardless of what happens, early June seems like it will be a very important time for AMC due to executive order 14032.
I’m curious to learn what you think.
Leave your thoughts in the comment section of the blog below.