3 Reasons to Avoid AMC Stock and 1 Rival to Buy Instead
Is the AMC rollercoaster finally over? Here's what you need to know about this fallen giant.
Movie theater operator AMC Entertainment Holdings (NYSE: AMC) has been on the outs for a while. The stock soared 1,180% in 2021, but that lofty peak was followed by price drops of 76%, 82%, and 35% in the next three years.
AMC's stock price is down another 20% year to date. Some might call this the bottom of the barrel, arguing that the stock is poised for a huge recovery. Let me show you three reasons why I disagree, followed by a sector rival that really does look like a good investment today.
The movie theater industry was already struggling when the coronavirus pandemic arrived. At the end of 2019, AMC's stock had fallen 53% over the previous two years amid flattish sales growth and unpredictable profits. The lockdown era only accelerated an existing downturn.
