AMC Entertainment Stock News and Forecast: AMC stock extends recovery rally towards $20

Update: AMC Stock finished extended its upsurge into the fourth straight trading day on Wednesday, booking a whooping 8.01% advance. In doing so, the company’s share price scaled to the highest level in nine days at $18.27, although finished a tad lower at $18.21. Bulls need to recapture the July 21 high of $18.37 to resume its bullish momentum towards the $20 mark. Global shares climbed towards the highest levels since early June, helped by US earnings and strong S&P Global and ISM Services PMI data. AMC stocks price cheered the market optimism while also capitalizing on the gains in Chinese tech companies. Further, the recent bizarre rally in AMTD Digital Inc (HKD) also helped AMC build a solid recovery momentum.

AMC Entertainment (AMC) stock is riding the wave of the newest meme stock in town. That new meme stock is AMTD Digital (HKD), a shadowy Hong Kong-based investment bank of sorts that has advanced as much as 33,000% since its IPO on July 15. That type of movement has led observers to believe that meme stocks are back to risk-on mode. Premarket trends point to another rally in AMTD Digital on Wednesday, and that may mean AMC stock is set to rally as well.

While the broader market got off to a rockier start to begin the week, AMC stock was up 15.8% in the first two sessions. Now on Wednesday, AMC stock has charged ahead in the premarket, up another 3.9% to $17.51.

AMC stock news 

The most important aspect of AMC's recent rise, however, is CEO Adam Aron's tweet from last month: 

Thursday, August 4 is tomorrow, so much of the retail crowd that has been following AMC for some time is preparing for the prophecied MOASS. This stands for the Mother Of All Short Squeezes. Traders think once AMC Entertainment reports Q2 earnings, a steep level of buying will destroy institutional short sellers and produce so much upward pressure that they will be forced to buy out of their shorts at staggering prices. Think of it like the hobbits preparing for Helm's Deep.

At AMC's Q2 earnings call, which is scheduled for the post-market on August 4, Wall Street is expecting adjusted earnings per share of $-0.23 on revenue of $1.18 billion. Analysts are mixed on their outlook ahead of the release.

Warner Bros.'s DC League of Super-Pets brought in $23 million in its debut over the weekend, which mostly impressed box office observers. Still it was below the previous weekend's winner, Nope. That horror film from Jordan Peele did $44 million in its opening week and has now surpassed $80 million cumulatively. It does not open internationally for another few weeks but is already the best grossing original film in its opening weekend since Peele's Us, which came out before the pandemic. 

Neither of these films are anywhere close to Minions: The Rise of Gru, which has done $714 million globally, or Thor: Love and Thunder, which has grossed $665 million worldwide.

IMAX CEO Richard Gelfond recently said he was impressed with movie attendance. "We're only down 5% from 2019, which was our best year ever," Gelfond said. IMAX reported earnings last week and beat forecasts for revenue.

AMC stock forecast

It is doubtful that there will be major selling before Q2 earnings are released. While AMC stock appears to have reached resistance around $17.50 at the moment, everything will depend on the results. Of note is the Relative Strength Index (RSI) heading back toward its high on July 21. This shows the trenchant demand for AMC stock and demonstrates there is a ways to go before an overbought reading.

Right now bulls will mostly be thinking about overtaking the July 21 price high of $18.37. Support sits where the 9-day and 21-day moving average cross around $15.30 and then at the longer-term support trend line at $14. That trend line began ascending on May 12, so it is nearly three months old and likely rather hard to break in the near term.

AMC daily chart

Previous updates

Update: AMC Stock finished Wednesday at $18.21 per share, up 8.01%. Gains were directly linked to the positive tone of Wall Street, as the three major indexes managed to end the day in the green. The Dow Jones added 1.28%, up 5.51%, the S&P500 added 73 points, while the Nasdaq Composite was the best performer by adding 2.59%, up a whopping 13.84% from a month ago. Upbeat us data underpinned stocks as a solid US Services PMI hinted at a resilient economy, despite fears of a potential recession. 

Additionally, multiple US Federal Reserve officials hit the wires ever since the week started and signaled they are far from done with quantitative tightening. On the other hand, most believe that inflation will continue to broaden, and will likely need more aggressive action from the central bank. By the end of day, speculative interest put a 75 bps rate hake in September back on the table.