Movie theater chain AMC Entertainment Holdings (NYSE: AMC) faced bankruptcy during the pandemic before retail investors rescued it, making it the face of the meme stock craze that's made headlines over the past couple of years.

AMC has so far survived the hit it took from the ongoing pandemic, but it still has some financial issues that could soon force the company to issue additional shares to raise more money. Here is why investors should think twice before buying shares in this company and before trusting management to spend the funds raised properly.

AMC's biggest problem is that it's not a healthy business temporarily hurt by COVID-19. It was a struggling company before the pandemic and its struggles were only exacerbated as the pandemic continued. Pandemic-related restrictions have eased for the most part and you can see in the chart below that AMC's quarterly revenue is approaching pre-pandemic levels:

Continue reading

Source Fool.com