1 Green Flag for AMC, and 1 Red Flag

After a yearlong 85% pullback from its peak price, the stock of AMC Entertainment Holdings (NYSE: AMC) is looking like it's on the mend. The movie theater chain's volatile shares now stand 77% above their May low, and continue to march higher. It might be a sign that the company has finally put the pandemic in the past, an idea supported by raw data.

On the other hand, AMC's biggest problem prior to the advent of COVID-19 is not only still a problem, but is still as big a problem now as it was then.

The pandemic-prompted shutdowns of movie theaters led to a surge in streaming sign-ups, ultimately posing a threat to the theater business -- why pay for an expensive movie ticket when you're paying for access to cost-effective streaming content enjoyable at home? Not that it would have proved an existential crisis, but the trends could have permanently altered the theater business for the worse.

Source Fool.com