Upgrade to MarketBeat All Access to add more stocks to your watchlist. Wondering when you’ll finally be able to invest in SpaceX, StarLink, or The Boring Company? Click the link below to learn when Elon Musk will let these companies finally IPO. In 2023, AMC’s revenue was $4.81 billion, an increase of 23.04% compared to the previous year’s $3.91 billion. Discover which analysts rank highest on predicting the directional movement of AMC.
year income & revenue
The company was founded in 1920 by the Dubinsky Family and is headquartered in Leawood, Kansas. The company has been in business for over 90 years but went public in 2013 after getting bought out by an read our guide to find the best forex learning book today investment group seeking to boost the company’s global presence. That investment group, Beijing-based Wanda Group, is still the company’s largest shareholder.
Company Insights: AMC
It’s still worth $6 — less than the $10 price at which investors bought shares. Ironically, the more shares the company sells above intrinsic value, the closer The psychology of trading intrinsic value will move toward the sale price, but it will never exceed that value. AMC Entertainment Holdings Inc. will report third-quarter results after market close Wednesday amid signs that the cinema industry is bouncing back from the devastation wrought by the COVID-19 pandemi… AMC Entertainment Holdings Inc AMC is set to report third-quarter earnings Wednesday.
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Investors should closely follow theater attendance over the coming quarters, which likely must be at least comparable to pre-pandemic levels for AMC to generate cash flow over the long term. The company has $1.1 billion in available liquidity (cash plus open credit lines), so it does have time to right the ship. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
AMC Entertainment Stock Analysis – MarketRank™
Riley upgraded the stock, saying the raise likely lessened the need for more capital ahead of an industry recovery. Riley only raised its price target from $13 to $16 — less than half of where shares trade now. AMC Entertainment Holdings Inc. reported better-than expected third-quarter revenue and a narrower loss after market close Wednesday, with the movie-theater chain and original meme stock pointing towa… In 2019, before the pandemic, AMC reported “adjusted” free cash flow of $358 million — and that figure incorporated some generous adjustments.
- The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, August 23rd 2023.
- Murdick had also owned AMC’s debt, likely at distressed prices, so the equity raise may have been a ploy to increase the value of its debt by increasing AMC’s creditworthiness.
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- The company made headlines again in 2011 with the launch of its STUBS rewards program, a premier program that offers discounts and other deals to its members.
Later, the company announced the launch of streaming services in 2019 and listed thousands of titles across a wide spectrum of genres and categories by mid-2022. The big exception to that rule is if the company can use that cash to make high-return investments that will increase intrinsic value going forward. For instance, if a company is really worth $1, but is able to sell shares at $10, let’s say, doubling its share count, it increases the company’s intrinsic value from $1 to $6 ($1 plus $5 per share in cash).
The company’s share count has also nearly quintupled from pre-pandemic levels to 502 million shares outstanding. Murdick had also owned Acciones google AMC’s debt, likely at distressed prices, so the equity raise may have been a ploy to increase the value of its debt by increasing AMC’s creditworthiness. Although a savvy trade by Murdick, it apparently sold too early as well, as AMC’s shares skyrocketed over 100% the next day, reaching a high of $72.62, and prompting trading halts. Incredibly, AMC was allowed to sell another 11.5 million more shares to the public the following day at $50.85 per share, raising a whopping $587.4 million while only minimally diluting shareholders. On May 26, sell-side firm CFRA upgraded AMC, but only from “Sell” to “Neutral” and giving an $18 price target.
The movie-theater chain and original meme stock is riding a broader industry rebound, according to an analyst at B. Basically, shares seem massively overvalued from a fundamental point of view, and the stock is extremely risky at these levels. That doesn’t mean investors can’t make money on technical buying bursts like we’ve seen over the past month, but that’s not really investing; it’s subscribing to the greater fool theory. With vaccinations accelerating faster than thought since March, reopening optimism apparently reignited the WallStreetBets message board on Reddit, because AMC’s stock began appreciating shortly after earnings. In August, AMC issued a special dividend, giving shareholders one unit of AMC Preferred Equity for each common share.
Until its financials improve to the point that massive dilution is off the table, owning the stock is risky, even after its 90% decline. AMC Entertainment Holdings AMC offset lower attendance with higher ticket prices and food and beverage revenue to help beat third-quarter revenue and earnings per share estimates, which could help the… The US box office made a spectacular comeback in the third quarter with ticket sales hitting a number not seen since the start of the pandemic. Movie-theater chain and original meme stock AMC expects a box-office boost from a slate of major releases in 2025. As far as anyone knows, the companies whose stocks are being traded as meme stocks haven’t actually done anything to reorient their fortunes in a way that would merit the tremendous run-up in their stock prices.
AMC’s long-term survival doesn’t necessarily mean it will be a rewarding investment for shareholders. On a positive note, the stock’s sky-high valuation after its short squeeze has largely dissipated. Today, its enterprise value, which is its market cap plus its net debt, is still 37% higher than three years ago (pre-pandemic), but it’s well off the 400% bump it saw during its squeeze. AMC’s current struggle makes that valuation virtually impossible to justify. While accretive theater acquisitions could add value, I doubt any acquisitions would materially increase AMC’s free cash flow, since AMC already has massive scale as the largest theater chain in the world.
Leading the way is video game retailer GameStop, whose shares have soared approximately 180% to $48.75 after closing at $17.39 Friday. The Motley Fool has no position in any of the stocks mentioned. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.