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AMC stock has gained approximately 657% in the past year and has now gained 50.24% in the past month.
AMC Entertainment Holdings Inc (NYSE: AMC) stock traded around $46.39 during the extended trading session, down approximately 2.13%. However, that is a negligible change considering AMC stock has gained approximately 2,135% since the calendar flipped. The astounding gains began late last year when a group of Redditors named WallStreetBets influenced and championed for an unpopular stock short squeeze.
Notably, AMC stock has gained approximately 657% in the past year and has now gained 50.24% in the past month. However, despite the meteoric rally, a considerable number of Wall Street analysts are skeptical about the continued bull market.
As per a survey conducted by MarketWatch, 9 Wall Street ratings gave AMC stock an average of Under rating. According to a JPMorgan report that was authored by Nikolaos Panigirtzoglou a cross-asset research analyst at JPMorgan, as long as the retail keeps on buying the stock market, the bull market is expected to continue in the coming months. However, the report warned that the rally cannot be sustained for long and described the stock frenzy as a melt-up situation that does not continue forever.
As an entertainment company, AMC was both hit and revitalized by the Covid pandemic. On one hand, as more people stayed at home, few people went to movie theaters for an extended period. However, on the other hand, the company has gained sympathy from retail investors and has seen its market valuation rise to approximately $24.56 billion at the time of reporting according to market analytics provided by MarketWatch.
With the huge cash reserves, AMC is well-positioned to take up any opportunities presented by the Covid pandemic.
AMC Stock and the Market Outlook
In order to ensure future growth prospects, AMC has embarked on a journey to reinvent its business model. The latest update has been to take its advertisements to televisions away from traditional mode of advertisements.
“As we have said repeatedly of late, thanks to the billions of dollars we have raised this year, AMC is strong, and it is time for AMC to play on offense again,” CEO Adam Aron said in a statement
The company has described the move as an offensive rather than the prior defensive moves made during the beginning of the pandemic to caution the company from the crisis unpredictability.
“With all the change occurring in these uncharted waters in which we now navigate, we believe it is high time for an industry leader like AMC to go on television to remind today’s audiences of the magic that can only be found in a movie theatre and at AMC, with our big seats, our big sound and our big screens,” Aron said.
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