The American cinema operator surprised with its figures for the second quarter and sees itself well on the way to even being in the black again in the fourth quarter. Good ingredients for an exciting stock film in the AMC cinemas. However, a good movie also includes at least one villain. In the case of AMC, these are the analysts. While investors celebrate the numbers with a plus of a little more than 10 percent, the experts remain cautious.
Meme stocks are volatile
“AMC to the moon” is not a film that is shown at the American cinema operator, but rather a battle cry with which the share is repeatedly pushed in the relevant forums and also outside of them. After the short sellers had already been put in their place at GameStop, the AMC share was virtually the battlefield. Wipe out the unpopular short sellers and still earn something. Who can resist such a temptation? The share made it to over $ 70 at its peak, even though the box office was completely closed due to the Corona crisis. However, not all investors are likely to have had a happy ending for the stock, as the price came back to just under $ 30 by the beginning of August. Now the numbers are there and is “AMC to the moon 2.0” coming?
The starting position has improved significantly
The American cinema operator has cleverly exploited the exaggerated price increases through capital increases and share sales and is thus sitting on a comfortable financial cushion that can be used to buy additional cinemas. In addition, movie hits like Black Widow have significantly reduced losses. While the experts had a loss of 91 cents per share on the bill, AMC presented a loss per share of 71 cents. Thus, the cinema operator was able to reduce the net loss from 561 million dollars in the same period last year to 344 million dollars. AMC also exceeded expectations in terms of sales. Here the experts reckoned with 382 million euros and the American delivers 444 million dollars.
Popcorn & Coke for Bitcoin
AMC is slowly coming out of the corona crisis. All US cinemas have been open again since the end of June, as have almost all international cinemas. A total of almost 930 cinemas are now back in operation worldwide. In addition, entry, snacks and soft drinks can be paid for with Bitcoin in the future. AMC is introducing a new payment system for this. The badly battered cinema operator is back on the offensive. If the stock were still on the ground or in recovery mode, experts would probably recommend buying the stock out of the blue. Only the course is not down. At just over $ 36, the price is roughly on par with AMC’s heyday.
AMC rate since 2010 in US dollars
Experts are not convinced
The prerequisites for AMC have improved significantly, but the analysts are still not convinced – the numbers do not give a buy recommendation. Nevertheless, they are not in a negative mood. Wedbush announced that AMC had made the most of its “meme stick” status. But there are also critical voices. Alan Gould of Loop Capital sticks to his sales vote: “The recovery of the broader cinema business is not strong enough to justify the high share price of AMC.” Meghan Durkin, an expert at Credit Suisse, said in a statement that the Delta variant ” at the box office continues ”. It rates the stock as underperforming.
“AMC to the Moon 2.0”?
The paper of the American cinema operator will currently only fly to the moon in their own cinemas. The share has almost completely used up the initial double-digit price gains during the course of the trading day. Meanwhile, the paper is still around 2 percent plus. This development shows that the course will not take off anytime soon. The status of meme stock puts the ordinary investor off for good reason. The development of the course does not depend on the operational development of the cinema business, but on the mood of the investors in the relevant well-known forums. Surely some had expected the stock to take off again today. When this did not happen, some gamblers probably left disappointed again.
Although a light can be seen at the end of the tunnel, serious investors should keep their hands off the stock. It cannot be ruled out that the course will take off again, but it is also possible that it will halve again. Therefore, only die-hard gamblers should deal with the stock.
By Markus Weingran
Photo: Eric Glenn / shutterstock
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