Meme stock AMC Entertainment Holdings (NYSE:AMC) has been swinging wildly with the speculative bets of memesters. The company has lost 56.3% so far this year while witnessing intermittent hiccups of sharp stock price jumps.
Notably, these price swings have less to do with AMC’s theatrical exhibits or financial performance but more to do with the meme-stock frenzy. However, lately, the meme mania for AMC seems to have taken a backseat with other meme stocks like Bed Bath & Beyond (NASDAQ:BBBY) taking the lead. The company has even recently started trading its AMC Preferred Equity units (NYSE:APE) under a special dividend program.
The Latest News on AMC
In a surprise move, AMC announced that for the first time, AMC theaters will be streaming a Netflix (NASDAQ:NFLX) original movie for a month before its online debut. As per an agreement between the parties, AMC theaters will show Glass Onion: A Knives Out Mystery at more than 200 U.S. locations as well as at select Odeon Cinemas across the U.K. and Europe. The ticket sale will start on October 10.
CEO Adam Aron shared the news on his Twitter handle today, while also noting the possibility of screening more Netflix original movies at its theaters.
Meanwhile, AMC’s recent $27.9 million investment in gold miner Hycroft Mining (NASDAQ:HYMC) seems to be in the doldrums. The news of HYMC’s delisting fears dragged down AMC stock by about 6.4% on October 5.
Investors Display Opposing Stance on AMC Stock
Retail investors are displaying a Very Negative sentiment toward AMC Entertainment stock. As per TipRanks’ Stock Investors tool, 1.6% of investors have reduced their exposure to AMC stock during the last 30 days.
On the contrary, TipRanks’ Hedge Funds Trading Activity tool displays a Very Positive signal on the theatre company. As per the tool, six hedge funds have bought 569,400 shares of AMC stock in the last quarter.
What is AMC Stock’s Price Prediction?
On TipRanks, AMC Entertainment has a stock price prediction of $5.53, which implies 22.3% downside risk. AMC stock has a Moderate Sell consensus rating based on two Holds and three Sells.
Final Thoughts
AMC Entertainment needs to do more than just raise cash to stabilize its business operations, especially once the meme stock mania fizzles out. The theater chain needs to release a slew of blockbuster movies across its theaters worldwide and effectively manage its margins. Albeit, viewers’ preferences have shifted more to online streaming than visiting theaters since the pandemic. This adds to the already painful journey of theater companies to recover their dimming business momentum.
