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Investor Warning: Why AMC Is a Meme Stock to Avoid at All Costs
Investor Place· 2024-06-28 10:00
Don’t be fooled by the return of meme stocks. It’s curtains for AMC Entertainment (NYSE:AMC) stock. In mid-May, AMC jumped 135% higher in less than a week as investor interest in meme stocks was rekindled. However, just as quickly as AMC’s share price rose it fell again. Once again, investors who took the bait got burned. Year-to-date, AMC stock is down 25%. Over the last 12 months, the company’s share price has plunged 87%. Trading at less than $5 per share, AMC is now a penny stock and one that should be ...
What Will Happen To REITs In A Recession?
Seeking Alpha· 2024-06-27 11:45
Group 1 - The article discusses the potential impact of an upcoming recession on Real Estate Investment Trusts (REITs), suggesting that most REITs may actually benefit from a recession due to their structural resilience [2][10] - REITs are characterized as recession-resistant because they typically earn cash flow from long-term leases and maintain low debt levels, making them less vulnerable to economic downturns [3][5] - Historical data indicates that REITs have outperformed the broader stock market during recessions, generating positive returns in late cycles and only experiencing slight declines during downturns [7][9] Group 2 - Current valuations of REITs are already discounted, trading at their lowest levels in over a decade relative to the broader market, primarily due to rising interest rates [10][12] - The expectation is that a recession will lead to interest rate cuts, which would alleviate the current fears surrounding high interest rates and positively impact REIT valuations [14] - The article concludes that a minor GDP decline is unlikely to cause significant drops in REIT share prices; instead, it may trigger a rally as the market narrative shifts positively towards REITs [15][16]
AMC Stock's Siren Song: Resist the Call of This Meme Play in 2024
Investor Place· 2024-06-26 10:15
AMC Entertainment (NYSE:AMC) has certainly seen its fair share of upside during recent meme stock rallies. In fact, during this year's recent surge, AMC stock soared as speculators piled into this beaten-down name. Much of this activity was tied to fellow meme stock GameStop (NYSE:GME), and the re-entrance of Keith Gill and retail investors into the name. However, aside from highly speculative factors, there aren't really any fundamental catalysts that suggest this is a stock worth buying right now. So, for ...
Virtual Production Market Set for Significant Expansion Driven by Technological Innovations & Shifts in Media Consumption Habits
Newsfilter· 2024-06-25 17:00
PALM BEACH, Fla., June 25, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - The experts agree that through 2031 the Global Virtual Production Market should continue to grow at an increasing rate. This robust expansion is driven by the escalating demand for realistic and immersive visual content in the film and gaming industries, coupled with advancements in technologies such as real-time rendering, motion capture, and augmented reality. Additionally, the film industry's shift towards remote and vir ...
AMC Stock: AMC Entertainment Is in Talks to Cut Its Debt
Investor Place· 2024-06-24 18:33
AMC Entertainment (NYSE:AMC) is a favorite of meme stock investors and moviegoers — and for good reason. The theater chain’s hundreds of locations have provided a nostalgic pastime for many and the business does appear to be rebounding from pandemic lows. Unfortunately, though, AMC stock hasn’t played ball. Despite a brief surge tied to recent meme mania, shares have headed consistently lower, at least in recent weeks.Today, AMC stock is down almost 2% in early afternoon trading, continuing this trend. Howe ...
AMC Stock Price Prediction 2025: What the Sell-Side Is Saying Now
Investor Place· 2024-06-21 11:00
Core Viewpoint - AMC Entertainment's stock is currently rangebound, with analysts suggesting that future performance will depend more on fundamentals rather than speculative trading trends associated with meme stocks [1][2]. Analyst Consensus - Five Wall Street analysts cover AMC, with three giving a "sell" rating and two a "hold" rating, indicating a lack of bullish sentiment [2]. - Analysts have historically been cautious about meme stocks, and AMC's fundamentals, including its unprofitability and high debt levels, contribute to this negative outlook [2]. Financial Performance and Comparisons - AMC's post-COVID recovery has been sluggish, leading to uncertainty about its operating results [3]. - Cinemark Holdings is presented as a better investment opportunity due to its profitability and reasonable valuation at 16.8 times forward earnings, unlike AMC which faces risks of shareholder dilution [3]. Price Predictions - The 12-month price targets for AMC range from $3.20 to $8 per share, with an average consensus of approximately $5.54, suggesting a potential upside of around 15% from current prices [4]. - The higher price targets are influenced by optimistic forecasts from Credit Suisse and B. Riley, while Citi's more conservative target of $3.20 reflects current performance and dilution trends [4][5][6]. Investment Outlook - Without another wave of meme trading, AMC's future stock performance will likely be driven by its fundamentals, indicating that the risk/return profile may not be favorable [7]. - A cautious approach is recommended, with the suggestion to wait for AMC's stock to approach the $3.20 target before considering a buy [7].
Why Institutional Investors Are Divided on AMC Stock's Future
Investor Place· 2024-06-21 10:10
Core Viewpoint - AMC Entertainment's stock has experienced volatility following a recent meme stock rally, with significant private equity buying indicating potential confidence in the company's future despite ongoing challenges in the movie industry [1][2]. Group 1: Stock Performance and Investor Activity - AMC stock surged 32% in one day but subsequently lost more than one-third of those gains, stabilizing at a lower level [1]. - Hedge funds and mutual funds have been actively purchasing AMC shares, with Quadrature Capital quadrupling its holdings to 818,077 shares, increasing its investment to $5 million [2]. - Vanguard Group acquired nearly 6.6 million shares, raising its stake to $123.5 million, while Virtu Financial and Seven Eight Capital established new positions valued at $202,000 and $1 million, respectively [2]. Group 2: Market Challenges - The movie industry is facing difficulties, with AMC needing a strong summer box office to drive attendance, which is currently lacking [4]. - Historical trends show a decline in blockbuster films, with AMC struggling to fill seats as attendance remains below pre-COVID levels, with a 23% drop in movie ticket sales year-over-year [5]. Group 3: Shareholder Dilution and Institutional Confidence - AMC has significantly diluted its shareholders over the years, with over 295 million shares outstanding, limiting the impact of recent institutional investments [3]. - Despite initial support from private equity, Quadrature Capital reduced its holdings to 420,186 shares, indicating a potential decrease in confidence among institutional investors [6].
AMC Entertainment (AMC) Registers a Bigger Fall Than the Market: Important Facts to Note
ZACKS· 2024-06-20 22:50
AMC Entertainment (AMC) closed the most recent trading day at $4.81, moving -1.03% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.Heading into today, shares of the movie theater operator had lost 3.95% over the past month, lagging the Consumer Discretionary sector's gain of 0.82% and the S&P 500's gain of 3.59% in that time.The investment community will be p ...
Eject Now 3 Stocks Too Toxic to Touch When the Market Melts Down
Investor Place· 2024-06-20 20:44
As the stock market grows, savvy market watchers must know that all that glitters is not gold. In the landscape of soaring indices, certain stocks represent ticking time bombs, laden with issues that could lead to significant declines when the market cools off.The market’s current exuberance masks underlying vulnerabilities in several sectors, where companies face critical challenges ranging from operational inefficiencies to overstretched valuations. General market trends or temporary catalysts may have bu ...
Judgement Day for Roaring Kitty? 3 Meme Stocks to Sell Before June 21
Investor Place· 2024-06-19 18:43
Meme stocks are essentially shares of a company that have gained immense popularity through social media. Keith Gill, better known as “Roaring Kitty” on social media, helped start this craze, which became amplified through the subreddit r/wallstreetbets.This led to the price of meme stocks exploding before subsequently dying down. This has happened again quite recently, with Gill’s return to social media. Meme stocks that were thought to be dead or dying suddenly showed signs of life. Because meme stocks te ...