© Reuters. Is AMC Entertainment a Meme Stock Worth Buying?
Theatrical exhibition company AMC Entertainment (NYSE:) is well-known thanks to a skyrocketing short-squeeze rally by its shares earlier this year. Significant retail investing helped the stock hit its all-time high of $72.62 on June 2. But the stock is currently trading 45.7% below its all-time high, So, can it rebound despite increasing competition from online streaming service providers? Let’s find out.One of the world’s largest theater chains, AMC Entertainment Holdings, Inc.’s (AMC) shares soared in price in January 2021 amid a meme stock frenzy. It also surged to hit its all-time high of $72.62 on June 2, 2021, and has gained 1,761.3% year-to-date to close yesterday’s trading session at $39.46.
As of September 30, 2021, the company operated 100% of its domestic theaters and approximately 99% of its international theaters.
However, the stock is currently trading 45.7% below its all-time high. Its shares have lost 5.6% in price since the company reported its third-quarter earnings on November 8. AMC’s top line increased in the quarter, and its losses narrowed, but its business did not return to its pre-pandemic level. In addition, AMC’s CEO, Adam Aron, sold 625,000 shares yesterday for roughly $25 million. So, the stock’s near-term prospects do not look very promising.
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