AMC Entertainment Holdings Inc. (AMC) Buy,…

AMC Entertainment Holdings Inc. (AMC)

1.96

+0.13 (7.10%)

as of Jun 4, 2026, 8:00:00 pm Market Open.

100 watching

BUY

It's avoided death by harnessing the enthusiasm of its shareholder base (a meme stock) to raise capital to tide itself over until better days. It now has $2 billion cash. People are returning to cinemas. It's led by a charismatic CEO.

DON'T BUY

The meme traders miss the point of AMC's success. Rather, its CEO has kept AMC alive by selling the memers stock at inflated prices that will outlast the pandemic. He isn't interested in stocks like AMC. Rather he wants companies with strong sales and earnings.

COMMENT

It has little chance to survive, unless it can keep issuing new shares to cash in on Reddit/meme-mania. Movie thetares are not a thriving industry now. Shares are way overpriced. AMC needs to reinvent themselves, but how? The CEO could ask the studios to give them a two-week window to premiere films before they go to streaming (and Disney would benefit from countering the perception that it's only a pandemic, not a reopening, stock).

COMMENT

We all know about the Reddit buyers. AMC issued more shares last week, but defied gravity as share actually moved up and not down. The CEO is doing everything right. Buyers are overwhelming sellers like he has never seen. The higher the stock rises, the easier it is for the CEO to raise money. As long as there's no roadmap that AMC has offered, then buyers will keep buying. AMC isn't worth nearly what it's trading for, but it doesn't matter! It's fine to buy a highly speculative stock (or Bitcoin) as long as you ring the register when the price soars.

COMMENT

Shares soared 83% this week. 80% of shareholders are retailer investors. He notes that AMC and AMC-X shares continue to diverge. He has the utmost respect for the Reddit crowd--they understand the complexity of stocks better than the pros do. However, the Wall Street establishment is trying to point out the folly behind all this, which is a warning we needed back in 2008 before the financial crisis.

COMMENT

Shares soared 83% this week. 80% of shareholders are retailer investors. The CEO issued more shares and will issue more. She agrees with AMC issuing new shares this week, because AMC's CEO needs to keep the company afloat and keep it alive. The CEO doesn't have any big maturities coming in future years, so he has time. But AMC isn't trading at option value, but at a gigantic market cap. The CEO has done everything right. Fantastic. She comes from a fundamental free cash-flow-driven analysis and AMC shares are so far from this.

COMMENT

The current Reddit/meme trade. He agrees What are the fundamentals that matter now to AMC stock? Short interest and social velocity. But price is truth. Whether you believe AMC is a good or bad stock, this Reddit trade is the new fundamental reality we are in.

SELL

These companies are completely disconnected from fundamentals. Valuation makes no sense. Be careful. Data on reopening shows movie theatre attendance as a laggard. Not optimistic on theatres returning to normal.

BUY

This depends on your risk tolerance. Today is rare--the Reddit run-up that doubled shares in a single session. Volatile. But AMC has cleaned up its balance sheet and done very well for its shareholders. Extraordinary.

COMMENT

You have to believe in the movie theatre business. They should raise capital and create content to become like Netflix, because the movie theatre business won't exist.

DON'T BUY

In Dec. 2016, AMC hit an all-time high around $39. Since then, AMC shares have declined. So, the demise of this industry happened long before Covid. And the business model has not changed. Inevitably, more people will lose money than make it.

DON'T BUY

As a trade? Definitely. If you're long, then dance by the doors, so to speak. The future of movie-going is not in question, but AMC's future is. They have a terrible capital structure that will continue. They should raise as much capital as they can now. Their numbers were weak even before Covid. They carry $400 million in interest expenses, for instance. This is a broken business. People will go to movie theatres again, but movie releases will forever change, and yes he loves going to the movies. No way that AMC can earning its way into this valuation, around 40x EBIT to revenue. This is a short squeeze on AMC with a lot of momentum now.

DON'T BUY

AMC was suffering before Covid with lousy numbers. Covid isn't the only cause of their woes. No, it's not purely a reopening play. Their projected earnings don't justify their valuation. A few blockbuster films are being released this Memorial Day weekend, but for $30 she'd rather see Cruella at home and order a pizza than go to a movie theatre. That said, she would pay to see a movie in theatre like Top Gun 2. There'll be a huge shift in how people watch movies.

BUY

The Reddit/meme short-selling trade is here to stay. It's where the little guy can bet against--and beat--the big guy. If you have entered this trade, you should probably take some profits here, wait for a pullback, then re-enter. This Reddit trading will keep coming back. He's watching as a spectator.

WEAK BUY

Tailwind is that the world is returning to normal, and AMC is the last man standing in the movie-theatre business, BUT this has a lot of debt.

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AMC Entertainment Holdings Inc. (AMC)