AMC Stock News: AMC Entertainment rallies 8% on Friday amid bear market bounce

UPDATE: AMC stock has advanced more than 8% to $13.22 in the first hour of Friday's session. It is being helped by the continued bear market rally that has been a major feature of the past week. This is key since $13 has acted as resistance recently. Now bulls will focus on the range high from May 18 at $14.22. A close above $14.22 sets up AMC for further upside next week. Riskier stocks are being helped by an overall bullish environment in which all three major US indices are once again in rally mode. The risk-heavy Nasdaq is up 2.2% 50 minutes into the session. May observers are pointing to GameStop's (GME) rally as a source of optimism and pressure for AMC, but GME is up just 3.8% at the same time.

NYSE:AMC made it three straight winning days this week as the meme stock continues to climb back from nearly dropping to its 52-week low. On Thursday, shares of AMC added a further 2.95% and closed the trading session at $12.23. The broader markets rallied for a second straight day after the May FOMC meeting minutes revealed the expected rate hike for June. The Dow Jones jumped higher by a further 516 basis points for its fifth straight gain, while the S&P 500 and the NASDAQ rose by 1.99% and 2.68% respectively during the session.

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Once again on Thursday it was GameStop (NYSE:GME) stealing the show as the original meme stock added a further 11.69%. Shares of GameStop are now up by 28.7% during the past five trading sessions, as the stock continues to see short squeeze-like behavior ahead of its earnings call on June 1st. Other meme stocks that have been rising alongside GameStop include Bed Bath and Beyond (NASDAQ:BBBY), BlackBerry (NYSE:BB), and of course, Tesla (NASDAQ:TSLA) which rose by 7.43% on Thursday.

AMC stock forecast

Despite GameStop’s stock still trading at outlandish multiples, it can be argued that AMC actually has the better long-term business opportunity. Movie theaters are still attracting guests, and while attendance is still lower than at pre-pandemic levels, the movie industry has proven to be a sustainable one as long as Hollywood continues to roll out blockbusters. Can we say the same for GameStop? The retailer is moving away from video game sales and recently announced both an NFT and crypto wallet, as well as the impending release of its NFT marketplace. At this point, it’s difficult to say that GameStop deserves to be trading at a higher multiple than AMC.

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