AMC Stock has had a massive trading week if you look at the last few trading sessions combined. AMC is up around 36% over the past 5 trading sessions alone. Coming off a hotter than expected Q3 earnings, investors might have more of a reason than ever to buy into the movie theater chain.
AMC STOCK Q3 EARNINGS BLAST OFF
AMC Q3 earnings were bullish without a doubt, here are some of the highlights:
• Total revenues grew to $968.4 million compared to $763.2 million for the third quarter of 2021.
• Net loss increased to $226.9 million compared to a net loss of $224.2 million for the third quarter of 2021.
• Adjusted EBITDA decreased by $7.5 million to a loss of $12.9 million compared to a loss of $5.4 million for the third quarter of 2021.
• Net cash used in operating activities for the quarter was $(223.6) million.
• Operating Cash Burn1
for the quarter was $(179.2) million.
• Available liquidity at September 30, 2022 was $895.8 million, including $211.2 million of undrawn capacity under the Company’s revolving credit facility
MORE REASONS TO BE BULLISH ON AMC STOCK AS OF NOW
- Movie theater ticket sales rising
- Movie theater concession sales rising
- movie theater merchandise sales (Found inside theaters and online)
- Perfectly popcorn company coming soon everywhere! (Found in malls and online)
- HYMC investment (Gold and silver mining stake)
- New Merger possibilities | Disney?
- New acquisition possibilities
- Buyout rumors
HEDGE FUNDS ARE RUNNING OUT OF MONEY!?
Hedge funds have been notorious for shorting names like AMC and GME stock and they could be facing a situation where they need to close short positions in order to keep their funds afloat. Hedge fund outflows are also something that is bring up concerns across the board. According to Reuters “Investors putted an estimated $26 Billion from Hedge funds during the third quarter according to data provided by HFR.
In addition, the second quarter had a $27.5 billion outflow, marking the first time since the peak of the COVID epidemic which was in 2020 that hedge funds have seen consistent withdrawals from one quarter to the next. Conditions are as bad or even worse in some areas of the markets since what we have seen during the 2020 lockdowns.
This high number of outflows are higher than average and could indicate a more sustained bear market could be ahead for investors