AMC Entertainment Holdings Inc. (AMC) shares dropped Monday morning, caught up in a wave of meme stock nostalgia sweeping social media. The theater chain is trending heavily alongside GameStop Corp., which saw renewed retail interest after 2019 correspondence between investor Michael Burry and "Roaring Kitty" made the rounds online again.
It's a bit of déjà vu for anyone who remembers the wild meme stock days. Old conversations resurfacing can apparently still move markets, or at least get traders talking.
The Business Behind the Buzz
Here's the thing: while AMC stock has been sliding for a month, the actual business recently posted some encouraging numbers. Third-quarter revenue hit $1.3 billion, beating Wall Street's expectations even though sales dipped 3.6% year-over-year.
Yes, the company reported a net loss of $298 million, but most of that came from non-cash charges tied to what management called a "transformative" debt refinancing. The operational story looked brighter. CEO Adam Aron pointed to record admissions revenue of $12.25 per patron and near-record food and beverage spending. When your popcorn game is strong, you're doing something right.
AMC is also riding some recent box office momentum. "Wicked" just delivered the company's biggest opening weekend for a PG- or G-rated film since early 2023. To capitalize on concession sales, the chain rolled out a $29.99 annual "Popcorn Pass" in late November, which is either genius or proof that Americans really love their movie popcorn.
Management is optimistic about the fourth quarter, expecting it to be the strongest in six years thanks to blockbusters like "Avatar: Fire and Ash." Not a bad setup heading into the holidays.
What the Technicals Say
The technical picture tells a different story. Market data shows negative price trends across all timeframes, with a Momentum score of just 7.42. The company does maintain a Growth score of 33.89, so there's that.
AMC shares were down 3.67% at $2.36 at the time of publication Monday.
How to Trade AMC
If you're interested in jumping into AMC, buying shares is straightforward through most brokerage accounts. Many platforms now offer fractional shares, meaning you don't need to buy whole shares. At $2.36 per share, $100 would get you about 42.37 shares.
Betting against the stock is more complicated. You'll need access to options trading or a broker that allows short selling, where you borrow shares to sell them. If your broker offers options, you can buy put options or sell call options at a strike price above the current trading level. Either strategy lets you profit if shares decline, though options trading carries significant risk and isn't for everyone.
