AMC Entertainment Holdings Inc stock has been on a wild ride lately. It has dropped nearly 15% this week, underperforming the S&P 500, but has gained 32% in the past month. Currently, the stock is trading at $47 a share. The stock recently received positive news from Walt Disney, which announced that the studio plans to release “The Lion King” exclusively in theaters by 2021.
The company recently made moves to expand its movie-theater business, including live-streaming NFL games and increasing the number of private theater rentals. While these moves are all positives for AMC stock, there are risks associated with the company’s growth prospects. If you’re looking for an investment opportunity, this may not be the best time to buy AMC stock.
If AMC didn’t find a new source of funding through retail investors, the company could have ended up like Cineworld, which had to resort to distributing preferred shares to its shareholders. But thanks to the retail investors, AMC is now raising significant amounts of cash to pursue new strategic goals. These initiatives will provide the company with much-needed capital to make it through weaker quarters.
AMC stock is a great investment opportunity if you enjoy theaters. The company owns movie theaters across the country and internationally. It has more than 200 locations worldwide.