2024-07-19 09:00:00 ET
Summary
- AMC Entertainment has declined -93.64% since 2022, with limited upside potential due to financial struggles and competition.
- Financials show AMC has been unprofitable, with declining revenue and a high debt load, making future prospects uncertain.
- Increasing competition from streaming services and high costs of movie tickets make AMC a risky investment with little potential for growth.
I have been bearish on AMC Entertainment ( AMC ) for some time, and while I don't have any direct exposure to the company, there are so many better opportunities in the market. The obsession with investing in companies because they go viral is perplexing to me. AMC could absolutely prove me wrong and turn the current situation around, but the deck is stacked against them as the financials tell a different story. When you invest in a company, you become an owner in the company's equity. Whether AMC investors want to admit it or not, financials matter. Shares of AMC gained some traction after shareholders rejected an executive comp plan that was issued by AMC and approved an equity incentive plan instead. This action allows executives to benefit if they generate value for shareholders, which further aligns the executive team with shareholders. I have been bearish on AMC for years, and it's declined -93.64% since my first article back in 2022. I think the competition is becoming too much for AMC to compete with, and the cost of operating its chains doesn't leave much upside or future growth on the horizon. I will deconstruct AMC's financials and discuss why I am still bearish and see limited upside in their future....
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AMC Entertainment: Deconstructing The Financials And Outlining Why The Deck's Stacked Against It