It's Finally Time for Serious Investors to Consider Buying AMC Stock
It's been a year since the meme-stock frenzy peaked with AMC Entertainment Holdings (NYSE: AMC) hitting all-time highs in early June of last year. The stock has shed 84% of its value, but it's not as if AMC bears have exactly had the last laugh. A lot of their stocks have fallen sharply, too.
AMC earned some of its downticks. Its share count has exploded fivefold through the pandemic, as the country's largest multiplex operator sold a ton of new stock at low prices to stay afloat. History also isn't likely to look kindly on the head-scratching investment in gold mining, an unnecessary distraction for a company that already has a lot on its hands in turning an industry around. There was also a lot of unsubstantiated hype, as inexperienced online traders touted unrealistic price targets based more on hope and noise than actual fundamentals-driven financial analysis.
It's easy to want to see AMC fail if you're on the outside looking in, but it's also time to put a cork in that schadenfreude. The multiplex industry is starting to turn the corner. The box office trickle is finally starting to become a gusher, and it's possible to finally make a legit bullish case for AMC Entertainment stock even with its more than 500 million shares outstanding.
Source Fool.com
