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AMC Stock (AMC.US): Live Price Chart

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About

History

Competitors

About

History

Competitors

AMC Entertainment Holdings is the planet’s biggest movie theatre chain. They are based in Kansas, in the US, but also have numerous theatres in Europe and other parts of the planet. The history of this group can be traced back to 1920, when Maurice, Edward, and Barney Dubinsky formed AMC theatres. However, multiple name changes, acquisitions, and takeovers have taken place since then.

They moved into drive-in movie theatres in the 1940s before gradually increasing their portfolio of locations all over the US. In addition, AMC helped to pioneer the multiplex and megaplex concepts, allowing them to greatly increase their revenue by offering movies on several screens at the same time in a single location without needing to hire more staff.
By the 1980s, AMC had moved into the UK market and currently they have a strong presence in Europe and the Middle East, as well as their long-standing presence in the US.

The AMC and GME 2022 Robinhood scandal refers to the events surrounding the sudden halting of trading of certain stocks by the Robinhood app. The stocks in question, AMC and GME, were both highly volatile, with AMC seeing a 1400% increase in value and GME seeing a 700% increase. Robinhood halted trading of these stocks, citing concerns about market volatility. This caused an uproar among users of the app, many of whom accused Robinhood of engaging in market manipulation. The scandal escalated when it was revealed that Robinhood had received billions of dollars in payments from hedge funds in exchange for halting trading.

A look back at the historic AMC share price (traded as AMC on the NYSE) shows a high level of volatility, driven by diverse factors such as rising and falling demand for movie theatres. The arrival of on-demand streaming services has put pressure on this industry, although their sales figures suggest that the public is still hugely attracted to blockbuster movies in this setting.

An example of the volatility can be seen in the AMC share activity at the start of 2021. Having secured $917 million in fresh funding to help them face the future, AMC stock was subjected to a short squeeze that led to its price shooting up by 300% before falling again.

Several events have influenced AMC's share price during this time. One of the most notable events was the "Reddit rally" in early 2021, when a group of retail investors coordinated through social media platforms like Reddit, drove up the stock price of AMC and other heavily shorted stocks. This resulted in a massive surge in AMC's share price, reaching its peak in June 2021.

However, it is important to note that after the Reddit rally, its share price experienced some decline. Factors such as concerns over the company's financial health, the impact of the COVID-19 pandemic on the movie theatre industry, and shifts in investor sentiment may have contributed to this decline.

Market conditions and potential innovations will be crucial in determining their future share value. The company has announced interesting steps such as accepting Bitcoin and other cryptocurrencies, as well as adding music concerts and sports to its business model for increased diversification.

AMC’s competitors include but not limited to:

  • Netflix (NFLX.US) is a global streaming giant, providing a wide range of on-demand content, including movies, TV series, and original productions. It challenges AMC by offering a subscription-based model, allowing users to access content conveniently and on their terms.
  • Amazon (AMZN.US) is a multifaceted competitor, offering a broad spectrum of services, including Prime Video for streaming content and a massive e-commerce platform. Its comprehensive approach challenges AMC's traditional cinema business model by providing diverse entertainment and shopping options to consumers.
  • Walt Disney (DIS.US) is another competitor, operating in the entertainment and media industry. Disney, with its vast portfolio of movies, TV networks, and theme parks, competes for consumer attention and revenue, particularly in the realm of family-oriented and blockbuster entertainment, posing a substantial challenge to AMC's cinema business.
  • Sony (SNE.US) is a competitor of AMC Entertainment, operating in the entertainment and media industry. Sony's diverse portfolio includes movies, music, and gaming, directly competing for consumer attention and entertainment spending.
  • Six Flags (SIX.US) competes with AMC Entertainment in the leisure and entertainment industry. As a leading amusement park operator, Six Flags offers alternative entertainment options, drawing families and thrill-seekers away from traditional cinemas.

Traders should know a stock's competitors before trading because understanding the competitive landscape helps assess a company's relative strength and potential risks. Competitor analysis provides valuable insights into market dynamics, pricing trends, and strategic positioning, aiding traders in making informed investment decisions and managing risk effectively.

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FAQs

Are AMC shares a good investment?

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AMC has been one of the most volatile stocks on the market in recent months, making it a risky investment for short-term investors. However, AMC shares have also shown consistent growth over the past year, and analysts believe that the company has strong long-term prospects. AMC is a leading entertainment company, and its shares are currently trading at a discount. The company has strong fundamentals, and its stock is expected to recover in the long run. As such, AMC shares may be a good investment for investors who are willing to hold onto them for the long term.

Who owns most AMC shares?

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AMC is a publicly traded company, and as such, its shares are owned by a variety of people and institutions. The largest AMC shareholder is Dalian Wanda Group, a Chinese conglomerate that owns approximately 20% of the company. Other major AMC shareholders include Fidelity Investments, BlackRock, Vanguard Group, and JP Morgan Chase. Together, these institutions own nearly 50% of AMC shares. The remaining shares are owned by smaller investors, including individual stockholders and smaller institutional investors.

Do AMC shares pay dividends?

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AMC does not pay dividends to its shareholders. AMC's stock is bought and sold on exchanges, and investors may trade AMC shares through a broker. AMC is not required to pay dividends, and it has chosen not to do so in the past. However, AMC may choose to pay dividends in the future, and investors should check AMC's website or contact a broker for more information.

What was the AMC short squeeze in 2021?

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AMC shares exploded in value in early 2021 after a short squeeze was initiated by retail investors on Reddit. The company, along with GameStop (GME) and other companies that had been targeted by hedge funds for short selling, saw their stock prices increase dramatically as retail investors bought up shares and forced the hedge funds to cover their positions.

The AMC short squeeze was notable not only for its size and scope, but also for the fact that it was driven entirely by retail investors using platforms like Robinhood.

Which are the competitors of AMC shares?

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AMC is the world's largest movie theater chain, with over 1,000 locations across the United States. However, AMC is not without its competitors. The two largest competitors in the movie theater industry are Regal Entertainment Group and Cinemark Holdings. Both of these companies are publicly traded, and AMC shares have been under pressure in recent years as investors worry about the future of the movie theater industry.

The company has responded to these concerns by investing in new technologies such as IMAX screens and reserve seating. AMC has also been working to improve the customer experience by making it easier to buy tickets online and introducing more comfortable seats. However, it will need to continue to innovate if it wants to stay ahead of its competitors in the years to come.

Time for a new meme bull market in AMC?

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The dynamics are very different now. AMC as a company has been entirely transformed since the pandemic. The business was re-collateralised via massive stock sales and convertible bonds that were converted to equity during the memestock mania.

AMC subsequently ran out of common stock to sell, so they got creative and issued APE’s, or AMC Preferred Equity Units.

The idea was that the two unit types would be economically equivalent and eventually convert back to common stock, but APE continues to trade at a deep discount to AMC.

Will APE’s drive the price of AMC lower?

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There’s little doubt that this decision will lead to shareholder dilution as long as the amendment passes to convert APE’s into common stock. It has passed the shareholder vote but remains subject to legal challenges in a Delaware court. According to Bloomberg’s Matt Levine, once the amendment is completed:

AMC will have 550 million authorized common shares (up slightly from the current 524 million), but, because of the reverse split, it will only have about 145 million outstanding (roughly 52 million from the old common shares and roughly 93 million from the conversion of the APEs). So it will have lots more room to issue lots more shares.

Approximately a quarter of the outstanding APE’s are owned by the Antara Capital hedge fund who may decide to convert their APE holdings into AMC shares and exit the investment.

Is AMC profitable?

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No. The company needs to keep raising capital precisely because the cash burn is high. Sustained profitability was out of reach throughout 2022, when the company reported a loss of $973.6 million, a slight improvement on the $1,269.8 million loss for 2021.

AMC needs to sell a LOT of tickets and popcorn to make up the profit shortfall.

Will AMC go bankrupt?

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Bankruptcy is a serious possibility for the movie theatre chain. Rival Cineworld filed for Chapter 11 bankruptcy late in 2022, and the resulting restructuring plan “does not provide for any recovery for holders of Cineworld’s existing equity interests”, wiping out existing shareholders.

AMC carries a debt load of over $5 billion and due to the financial position of the business, cheap financing is not an option. As interest costs increase, the company is at risk of becoming a zombie, existing only to service the interest costs of debt.

As the economy slows and interest rates rise, it seems unlikely that Internet white knights will ride to AMC’s rescue a second time. Further dilution and/or a complete restructuring seems inevitable unless the company can somehow pull off a miracle. Drastically cut costs or increase revenues despite the multi-decade declining trend in movie theatre ticket sales.

How does the AMC stock split work?

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The AMC stock split involves reducing the number of outstanding shares while maintaining the overall market capitalization. In the case of a reverse stock split, such as the one implemented by AMC, shareholders receive fewer shares for each share they previously held. For example, in a 10:1 reverse split, investors receive one new share for every ten old shares they owned. The goal is to increase the share price, making it more attractive to institutional investors and potentially improving the company's perceived value.

How to trade AMC?

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To trade AMC shares, you can follow these general steps:

1. Open a trading account with a reputable online broker such as Skilling.
2. Fund your account with the desired amount of capital.
3. Research the stock’s performance, news, and market trends.
4. Decide on your trading strategy, whether it's day trading, scalping trading, copy trading, etc.
5. Use your trading platform to place buy or sell orders for the shares.
6. Monitor the market closely and adjust your positions as needed.
7. Keep track of any news or announcements that may impact the stock price.
8. Consider setting stop-loss orders to manage risk.

Is AMC financially healthy?

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The financial health of AMC Entertainment Holdings Inc. has been a subject of scrutiny, particularly due to the challenging environment faced by the movie theatre industry during the COVID-19 pandemic. AMC's financial health could fluctuate based on factors like revenue, profitability, debt levels, and cash flow. It is crucial for investors and traders to assess AMC's financial statements, quarterly reports, and other relevant financial metrics. Additionally, monitoring industry trends, consumer behaviour, and the company's ability to adapt to changing market dynamics is important in evaluating its financial health.

What is the profit margin of AMC?

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AMC Entertainment Holdings had a profit margin of 0.64% for the quarter ending on June 30, 2023. Profit margin refers to the percentage of revenue that remains as profit after accounting for all expenses. The profit margin could provide an indication of the company's profitability and efficiency in managing costs. Normally this is known when the company releases its financial statements or latest earnings reports. Investors and traders can then analyse these reports and compare its profit margins with industry peers to gain insights into the company's financial performance and its ability to generate profits.

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