Where Will AMC Be in 5 Years?
Movie theater screens across the country faded to black nearly three months ago, and that means that exhibitors are fading to red. Market leader AMC (NYSE: AMC) is feeling the pain. The stock has more than doubled since AMC closed all of its multiplexes in mid-March, but that's just a convenient starting line. The shares have shed nearly a quarter of their value in 2020, 85% below the all-time highs set five years ago.
Earlier this week, it posted bleak preliminary results for the first quarter, and the current quarter is going to be brutal with most of its multiplexes still closed across the world. Even when there's a glimmer of hope -- Florida will allow movie theaters to open at 50% capacity through all but three counties on Monday -- there are larger concerns about what will be playing on the big screen and, more importantly, consumer appetite for the movie-going experience. Things seem pretty bad right now -- let's size up what the industry could look like in 2025. Spoiler alert: It won't be pretty.
Image source: AMC Entertainment.
Source Fool.com
