Forget AMC Stock: Buy Roku, Netflix, or Disney Instead
It was a fun run for the meme stocks, but AMC Entertainment Holdings (NYSE: AMC) is proving mortal. Shares of the leading multiplex chain begin this abridged trading week trading 73% below the peak set three weeks ago.
The knocks are real on the movie theater industry, and don't be surprised if many of the people who are buying the stock now haven't stepped into the local AMC since 2019. Box office receipts in this country were down 93% in January when pitted against where ticket sales were a year earlier. The vast majority of AMC theaters have reopened, but crowds are nowhere to be found. The biggest release in the last six months has been seen by less than 2% of the country. The second hottest release was screened by 0.5% of the country.
It's true that theaters have recovered more successfully in certain international markets that are ahead of the curve in silencing the pandemic, but stateside consumers have moved on. They've loaded up on dirt cheap high-def home theater systems. They're inundated with quality content streamed right into their homes. Exhibitors including AMC will find a cruel world waiting for them once the vaccination process plays out. Let's go over why Roku (NASDAQ: ROKU), Netflix (NASDAQ: NFLX), and Walt Disney (NYSE: DIS) are better bets for your portfolio.
Source Fool.com
