Two other anticipated films coming to AMC theatres in Q4 include Black Panter: Wakanda Forever and Avatar 2.
AMC’s Market Cap is Still Below Its Debt Load
AMC Entertainment’s current market cap is sitting at $2.88bn, the company has north of $5bn in debt.
The movie theatre chain company has done an incredible job at paying down its debt, although company shareholders and the public are what’s keeping AMC Entertainment afloat.
As long as there are moviegoers and investors feeding the company with liquidity, AMC Entertainment is far from gone like many short sellers would hope.
The public’s eye on the largest movie theatre chain company in the world has not faltered; for them, going to the movies is merely a means of reality going back to normal after the pandemic lockdowns.
And as we saw in Q3 earnings, AMC’s attendees have increased 33% from Q3 of last year, seating more than 53 million guests in Q3 alone.
Shareholders also play a massive role in the success of the century old movie theatre company.
The difference is shareholders are battling short and distort campaigns in a conflict of interest with mainstream media and Wall Street institutions who hope to profit from the possibility of bankruptcy.
And although AMC is no longer on the brink of going bankrupt, Wall Street seems to have a personal vendetta against retail investors who disrupted the flow of their short scheme.
Holding AMC Stock?
What are your current thoughts on AMC stock and in the direction the company is going?
Leave your thoughts in the comment section down below.
Don’t forget to join the newsletter for more market news and updates on your favorite stock tickers.
Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.
AMC Entertainment partnerships
AMC partnered with Chance the Rapper last year for his concert movie release.
CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.
Another successful showing was the UFC fight they held in theatres.
The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.
Retail investors have been specifically waiting for an AMC-GameStop partnership.
A topic Adam Aron teased could be in the works at some point.
AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.
One thing you cannot deny is the community strength and company relationship to its shareholders.
It’s never been seen before.
Do you own AMC stock?
Leave a comment below.
So, will AMC stock go up again?
Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.
This bear market won’t last forever.
And although the entire market is rather shaky at the moment, there will be a correction.
Hedge funds might have leverage to short the stock, but the people aren’t leaving.
AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.
AMC Entertainment on the other hand has beat earnings expectations every quarter since the beginning of 2021 when retail investors backed the company in an attempt to squeeze short sellers.
The company has been reducing its debt and increasing its value through a series of innovative and fundamental strategies such as the acquisition of several new movie theatre locations, the introduction of NFTs and cryptocurrency payment, and now the collaboration with online streaming platform giant Netflix.
The movie theatre chain recently partnered with Disney to offer Disney+ customers with exclusive perks such as special screenings at AMC movie theatres.
Is AMC Entertainment a sell?
Value investors would tell you otherwise.
InvestorPlace says now is the time to buy AMC stock as the company has come down dramatically from its all-time high.
“The SEC’s determination that the DLimit order does not violate the Exchange Act by unfairly discriminating or unduly burdening competition was reasonable and supported by substantial evidence,” the court found.
And now the industry is fighting the SEC on the possibility of eliminating payment-for-order-flow (PFOF).
A practice where market makers pay brokers a fee to reroute retail orders over to them.
Market makers tend to be short-biased and may use retails orders against them in a variety of ways.
AMC’s Fundamental Growth
AMC Entertainment has been improving fundamentally since its first quarter of 2021 when retail investors injected the company with billions of dollars in liquidity.
The movie theatre chain company had its best 2nd quarter in 3 years, seating more than 59 million guests, up 61% from two years prior.
In Q2, AMC had $52 million of positive operating cash flow and $107 million positive EBITDA, which is relative to the strength of a company.
The company ended Q2 with $1.18 billion in liquidity, a trend we’ve seen in the past with Q1 of 2022.
AMC announced in Q2 earnings it had reduced its deferred rent by more than $250 million and planned to reduce it by another $40 million ending the year.
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news and articles like this to stay up to date.
SPY Rallies on Thursday
The S&P 500 rallied on Thursday sending the entire markets up with it, including AMC Entertainment stock.
SPY rallied from $348.12 to a high of $367.51, a $19 jump!
Traders who cautiously warned about today’s possible volatility in the market following CPI announcements were caught off guard as SPY was pumped.
But AMC’s spike up to $6.28 was only temporary.
The movie theatre chain stock hovered above and below the support level of $6 per share throughout the day until market close.
Still, the market hasn’t been able to completely knock AMC Entertainment stock to ground levels.
Is it possible AMC has hit the bottom?
We’ll need to keep a close eye on how the theatre chain stock performs as the markets continue to bleed.
What we do know is that AMC Entertainment’s current stock price has held relatively well in the past prior to the massive run to $72.
Retail investors were able to inject the century-old company with so much liquidity that it drove the stock’s prices up while instilling institutional investor confidence.
Will retail investors be able to replicate the trading activity from last year?
Time will certainly tell.
Will Stocks Keep Falling?
Despite the SPY’s bullish rally on Thursday, it’s very likely that the market continues its downward trend as the Fed prepares to announce bank earnings on Friday – which so far have not looked too great.
This means that AMC will likely follow for now until the market begins to reverse.
It seems as if the economy is preparing for heavier announcements, which will undoubtedly affect the entire market.
AMC will have a rebound, but not until big buyers are ready to step in and enter the market again.
Unfortunately, retail investors cannot control the situation.
It’s important to pivot during this state of economic downturn our country is facing.
Large cap companies have announced the firing of several employees and Bank of America has stated that the U.S. economy will start losing 175,000 jobs per month in late 2022, early 2023.
The announcement of a recession seems inevitable, but it doesn’t mean retail investors should be a part of it.
Learning how to pivot will be key to your success in today’s shifting economy.