- 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.
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.
Stay up to speed with hot stocks' news!
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.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to modest recovery gains above 1.0700
EUR/USD clings to small recovery gains above 1.0700 on Monday following the previous week's slide. European political uncertainty continues to undermine the Euro and cap the pair's upside, while the US Dollar consolidates recent gains amid a tepid market mood.
GBP/USD remains pressured below 1.2700 amid cautious mood
GBP/USD stays on the back foot and trades below 1.2700 in the second half of the day on Monday. The hawkish Fed expectations and a softer risk tone keep the US Dollar afloat, exerting downward pressure on the pair. Fedspeak remains next in focus.
Gold retreats below $2,320 as US yields rebound
Gold struggles to build on Friday's gains and trades in the red below $2,320 on Monday. The benchmark 10-year US Treasury bond yield rebound above 4.25% following last week's slide, making it difficult for XAU/USD to gain traction.
XRP stuck below $0.50 as Ripple CLO says SEC has abandoned demand for $2 billion fine
XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).
Five fundamentals for the week: French opinion polls, US Retail Sales and Bank of England eyed Premium
Politics is back, with elections in France rocking markets. US Retail Sales and flash PMIs will provide insights into America's slowdown. The Bank of England announces its decision after all-important CPI data.