AMC Stock Price: Traders take profits on Friday after Thursday's AMC Entertainment stock rally

NYSE:AMC gained 12.40% during Thursday’s trading session.
AMC rival IMAX reported its Q4 earnings that could be bullish for the theater industry.
AMC needs to copy IMAX’s multiple revenue stream model to compete.

Stocks Reporter FXStreet

UPDATE: Despite all three major indices riding higher on Friday, AMC is trading down 3.5% to $17.05 at 11am EST. The best bet is that traders are taking profits from yesterday when shares rose 12.4%. The NASDAQ Composite is up 0.6%, The S&P 500 is up 1.1% and the Dow is up 1.4%. Previous to Thursday's spike, the stock dropped five sessions in a row.

NYSE:AMC broke out of its slump in a major way on Thursday as the global market had a boomerang session to finish the day in the green. Shares of AMC surged by 12.4% and closed the session at $17.68. The move higher snapped AMC’s five-day skid and provided one of the best closing gains of 2022 so far. AMC is still down by over 33% so far this year, and a lot could change following the company’s earnings call next Tuesday on March 1st. AMC wasn’t the only meme stock to rally on Thursday as its running mate, GameStop (NYSE:GME), also snapped out of a recent cold spell to gain 8.59% during the session.

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The recent quarterly earnings from AMC rival IMAX (NYSE:IMAX) could be a bullish sign for the theater industry moving forward. The movie theater company nearly doubled Wall Street expectations for both revenues and earnings per share. It was a strong performance for IMAX that even managed to outgain some of its figures from 2019 in a pre-pandemic world. While the holiday season is generally a good one for movie theaters, it would be dishonest to say that the ongoing pandemic restrictions have not had an impact on ticket sales at the box office.

AMC stock forecast

While this could be a bullish sign ahead of AMC’s earnings call next week, we have to keep in mind that IMAX has several other revenue streams. Some of these include exclusive screenings of programs or films in partnership with major brands like Apple (NASDAQ:AAPL) and Walt Disney (NYSE:DIS), as well as IMAX camera technology which are used to film things like live events and other special programs. AMC is really a one-trick pony when compared to the multiple revenue stream business of IMAX right now.

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