The stock market can be confusing, especially since everyone has their own strong opinion on what is a good investment and what is not a good investment. AMC for example, is one of those stocks that people seem to be extremely bullish or extremely bearish on. Investors may wonder, is AMC a good stock to buy? Will AMC stock price increase?
AMC Entertainment nearly went bankrupt in 2020 when the Covid-19 pandemic swept across the globe, causing theaters to shut down for months on end. However, since then, AMC has made an incredible comeback. In the Q4 Earnings call for AMC, we learned that the company has a positive net cash flow of $160 million. This is the first time the company has seen positive cash flow in two years. Additionally, AMC’s Q4 revenue reached $1.17 billion, meaning it was up 53% from Q3 and seven times the revenue of their 2020 Q4 revenue. If you’re an investor and you’re wondering if you should invest into AMC, stay tuned, because we’re about to dive into all you need to know about AMC Entertainment and your most frequently asked questions about AMC.
What is next for AMC?
CEO Adam Aron suggests that since the chain is now netting a positive cash flow, this will allow them to continue to pay down debt and increase investments into the growth enhancement of the business and focus on revenue growth. Recently we’ve seen AMC entertainment continue to innovate the company. AMC has introduced NFTS, Cryptocurriences, Branded Credit Cards, AMC Perfectly Popcorn, Variable Pricing, and Recovery, Agility & Transformation.
Does AMC sell NFT’s?
During the Q4 earnings call, Adam Aron said that future non-tangible tokens (NFT’s) would enhance engagement with guests. In 2021 we already saw AMC taking part in the NFT craze. AMC and Sony Pictures offered 86,000 non-fungible tokens to AMC Stub Premiere, AMC Stubs A-List and AMC Investor Connect members who ordered advanced tickets for the opening of highly anticipated Spider-Man: No Way Home. Qualifying members were able to claim their NFT on December 22nd and redeem it anytime before March 1st. Those who purchased Spider-Man: No Way Home movie tickets received exclusive Spider Man NFTs. NFT’s use blockchain technology, but instead of having implicit value similar to a coin, they are valued similar to a collectors item, such as purchasing a rare art piece. How will NFT’s help AMC? By releasing NFT’s, AMC will earn a royalty when a non-fungible token (NFT) is traded or sold.
Does AMC accept Cryptocurrency?
In addition to releasing exclusive NFTS, we’ve also seen the movie chain company recently start accepting cryptocurrency as a form of payment in November 2021. CEO Adam Aron announced via twitter that the public is now able to purchase movie tickets, gift cards and accessories online using cryptocurrency such as Bitcoin, Ethereum, Bitcoin cash and Litecoin. He stated that Dogecoin would be next and possibly even Shiba Inu coin. These innovative changes continue to draw in attention not only from possible investors, but also consumers, who are able to enjoy the new convenience of this nuanced payment method.
What is AMC Perfectly Popcorn?
Perfectly Popcorn is a new brand of microwavable popcorn that AMC Entertainment has recently been ramping up. Why did AMC launch Perfectly Popcorn you may wonder? So that consumers are able to enjoy the notorious AMC popcorn even when you’re watching movies in the comfort of your own home. The AMC Perfectly Popcorn brand is expected to make it’s way into retail stores this year. With the continuous growth in the retail space, it can be expected that AMC Entertainment will continue to be increasingly recognized and talked about as it continues to branch out into every market.
What is Variable Pricing?
AMC has been doing what’s known as “variable pricing” in their European theaters for a few years now, however recently they’ve decided to take the same approach to their United States theaters as well and have launched a pilot for variable pricing. Variable Pricing essentially means that AMC will be charging higher prices for specific movie titles based off of the anticipated demand of the films. This is a concept that many industries currently take part in, such as airline companies, hospitality and theme-parks, who all tend to charge more for popular products or charge more during busy times of the year. For example, AMC is charging more for “The Batman” tickets than tickets for other movies playing in the same theaters at the same time. In New York City, a ticket for a Friday night showing of “The Batman” is currently listed for $19 a ticket while other films are listed at $17.99 a ticket. Aron says this is just the beginning of their transformation and the CEO adds,
“ We remain focused on recovery and transformation. We remain focused on innovation and managing through change”.
As we’ve touched on many different aspects of AMC Entertainment, it’s easy to understand why retail investors love this company and believe in it without a shadow of a doubt. The company continues to make impressive strides in being innovative, progressive and ahead of the times in moving with society as opposed to some companies that are only falling more and more behind. With all this being said, many investors have one more burning question — is AMC still being shorted? Is AMC still going to short squeeze, and if/when will the MOASS actually happen?!
Will AMC Short Squeeze?
While it’s been recently reported that the DOJ is currently probing companies who have been suspected of short selling, or illegally manipulating meme stock prices to go down, there is no true clarity on whether that is officially true or false. However, AMC currently does in fact have a short interest of 21% — meaning that hedge funds are continuing to bet on the AMC stock price to go down. The current short interest of AMC indicates it could in fact surge to an all-time high, and many retail investors do believe the MOASS is on the verge. However, as always, it’s incredibly important to recognize that any investment is a risk and to proceed with caution, as the stock market is made up of an abundance of speculation. So, while the ape community is certainly invested in the AMC stock for the long haul, it’s always important to evaluate your own personal finances and risk versus reward.