- AMC stock tumbles nearly 8% on Thursday as markets pivot from Wednesday’s relief rally.
- AMC Entertainment will likely suffer from reduced discretionary spending during a recession.
- A movie company’s stock price is affected by market forces, see our latest S&P forecast.
Action AMC Entertainment (AMC) is likely to be familiar to you all, but just in case you’re a new reader, welcome! Here is a brief introduction. AMC is a global movie chain that has become a pandemic poster boy for the stock market frenzy that has also seen Robinhood (HOOD) rise to prominence. AMC was in danger of bankruptcy due to the pandemic closing all theaters and suppressing revenue. However, it survived thanks to debt rescheduling and capital increases. AMC and GameStop (GME) have become the two largest, most featured and most traded stocks of the pandemic.
Read also: AMC stock rebounds more than 7% to test $13 on Fed-led market optimism
Performance of the AMC share: suffered from the tightening of monetary policy
AMC Action saw wild swings as traders looked to hit institutional traders who had taken very short positions in the stock, betting it would go bust. This surge in prices and volumes has become self-fulfilling AMC Entertainment was able to use the dramatic increase in prices and liquidity to engage in a series of capital increases that enabled it to avoid bankruptcy. 2022, however, has seen global financial markets take a completely different turn from the freewheeling speculative frenzy that has accompanied the pandemic. This means that almost all stocks and sectors have suffered, but little more than the old meme stocks whose theater Company was a. The AMC in 2022 is just under 60%. Thursday, the meme stock fell 7.7% as markets completely reversed from Wednesday’s enthusiasm for the Fed’s 75 basis point rate hike. You wonder how the market thought a 3-4% hike after the biggest rate hike in decades was a good idea!
Adam Aron debunks false stock theories
Adam Arron, CEO of AMC Entertainment, has been a popular figure among the AMC retail army, known as the monkeys. These retail traders believe there is a conspiracy of Wall Street institutions selling the stock short, hidden or fake or using synthetic stocks. This is part of a powerful plot to reduce the shares of the theater company and thus hurt the long positions while enriching the powerful short group. However, Arron appeared to debunk the conspiracy theory this week when he tweeted that after performing six stock counts this year after repeated requests from AMC holders, he found no false, illegal or synthetic stocks. It will be difficult for the monkeys to keep pumping this conspiracy theory after this tweet from the CMA CEO.
Incoming tweets ask for a “share count” again and again. AMC has done a stock count 6 times in the past year. We know 516.8 million AMC shares. Some of you think the number is much higher. As I said before, we haven’t seen any reliable information about so-called synthetic or fake stocks.
— Adam Aron (@CEOAdam) June 15, 2022
The participation of Hydroft Mining
Hycroft Mining (HYMC), a gold mining company, was the subject of an AMC attempt to diversify its business with some leftist developments. Earlier this year, AMC took a stake in HYMC. It was indeed a clear field for a movie chain, but she saw the monkeys and the retail army pile in HYMC Stocksending him flying before the inevitable collapse. The gold mining company the stock is down 50% from its 2022 high of $2.59, but still up 135.48% year-to-date.
AMC has also attempted to take advantage of recent trends towards NFT and crypto. CMA accepts Dogecoin among other cryptocurrencies. The timing may not be ideal as this ecosystem is now collapsing like a lead balloon. Witness the crypto winter we are currently living and the recent news that Elon Musk is sued for a DOGE pyramid scheme. The NFT bubble has already burst. At least the AMC popcorn might work longer term!
Top Gun and Jurassic World’s dinosaurs to the rescue
Top Gun: Maverick and the last Jurassic World movie meant a strong start to the summer blockbuster season for AMC. At least for now, things are looking up in terms of movie releases. The company said it exceeded previous pre-pandemic metrics of 2019. The summer slate of movie releases looks solid, and with the effects of inflation only beginning to take hold, it will likely be overshadowed by the desire for real experiences rather than streaming or virtual ones. Expect a busy summer in AMC Theaters. The next step is Disney’s Toy Story spin-off Lightyear. A perfect timing to take advantage of the school holidays.
AMC Stock Forecast: Mixed Outlook
AMC shares The longer-term outlook, despite the summer of blockbusters, is decidedly mixed. With growing clouds on the horizon of the macro environment, it will be difficult for AMC Shares to outperform the market and generate positive returns for investors in our view. There will likely be occasional spikes as the meme stock remains a high beta name. As we move through this current bear market, we will see some bear market rallies, but the overall trend for AMC and the broader markets looks challenging.
From a technical point of view, the $8.95 support is getting closer and closer. A break of $8.95 will likely result in a move towards $4which is the longer-term average of AMC shares.
AMC stock chart, weekly
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