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AMC Entertainment (NYSE: AMC) is back in the news. By the maximum of 2021, it has been a signal to AMC’s unwavering shareholders to send inventories to the moon; however, so far, it turns out that AMC’s inventory remains docile. That is moderate to me, but I will leave it to you.
On November 1, the company announced that its October price ticket admission earnings are the highest of any month since February 2020. As someone looking for a strong economy, I welcome this news. But I’m not sure it fits the narrative of AMC’s actions. .
The company’s profit at the end of the last quarter was $444. 7 million, but that’s a far cry from the $1. 2 billion it earned in the first quarter of 2019 or the $1. 44 billion it earned in the same quarter of 2018. it is doing an exceptional job to improve its earnings prospects and the company’s debt seems very manageable in the short term.
But does that mean AMC’s inventory is valued at more than $40 according to participation?At the end of February 2020, AMC’s inventory had a final value of $6. 26, which is above the point of a cent of inventory, but with a decrease of more than 50%. at the end of February 2019.
Soupir, I know the diamond hands holding AMC don’t care, but the economy of 2018 and 2019 was running at full capacity. And AMC’s inventory was reduced for many reasons. The broadcast has something to do with it. However, like e-commerce, streaming is more prevalent, not less, and the country is recovering from a public fitness crisis that can permanently replace a person’s emotions at the thought of sitting in a theater for two hours.
In other news, AMC is asking retail investors and asking if the company uploaded Shiba Inu (CCC: SHIB-USD) to the list of cryptocurrencies that the company plans to settle for as a means of payment. This news is potentially more optimistic for AMC’s inventory. By settling for cryptocurrency as a means of payment, the movie chain is betting on coveted millennial and Gen Z consumers.
Unfortunately, I can say that even if I owned Dogecoin (CCC: DOGE-USD), my kids would almost be somewhere other than the cinema. It’s just not what they (or their friends) do. That’s one of the reasons why I think if AMC believes the drop in footfall is due to a payment method, it doesn’t have the plot.
But my joy before the pandemic was minimal in attendance. I don’t see that changing.
My take on AMC’s inventory is only similar to my confidence in the long-term cinematic experience. With that in mind, I see the return of the audience as the fruit at hand that is expected. hotels, many other people have not selected to avoid going to the movies. They were not presented with the option. It makes sense to wait for them to come back.
At the same time, it’s too early to say whether the movie chain is attracting “new” consumers who in the past weren’t for them. Be more optimistic Until then, I salute the monkeys, but I stay away from AMC’s actions.
Chris Markoch is an independent money teller who has been covering the market for seven years and has been writing for InvestorPlace since 2019.
AMC Entertainment’s post is not worth $40 consistent with the percentage that first made the impression on InvestorPlace.