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- AMC Entertainment Holdings opened December 2022 with a significant high.
- Millennials became the backbone of the company.
- The company shares were changing hands at a market price of $8.17.
A Steady Rise In Cinema Stocks
Cinema stocks are witnessing a slow but significant gain over the past few days. With the film industry awaiting big releases like Avatar 2 and Antman 3, theater chains like AMC Entertainment Holdings (NYSE: AMC), IMAX (NYSE: IMAX) are hoping for a large crowd of moviegoers into their theater chains. AMC stock started the last month with a boom, witnessing a 13% rise on December 1, 2022.
Though the stock returned to its previous position, plunging by around 10% since the rise. The company is experiencing a positive phase despite the losses and huge debts. Experts think that the Fed’s announcement regarding lowered hike rates contributed to the upbeat.
According to a Bloomberg report, Amazon announced that they will put $1 Billion investment every year in the theater chain. The retail giant is slowly stretching their reach into the streaming industry and is now planning to scale their operations with 12 to 15 theatrical releases next year. The company’s announcement proved fruitful to other cinema stocks like IMAX.
People have created AMC stock as a meme-stock. According to a Forbes article, retail traders saved the company from dismantling in the market. A majority of these investors are millennials who went to the theater chain during their childhood. Adam Aron, the company CEO, thanked retail investors for being the organization’s savior.
AMC Stock Price Analysis
The RSI shows that the investors are now showing interest in the AMC stock. Recently, the company saw their share price rising after a promotional Tweet associated with the Avatar 2 screening went viral on Twitter. The moviegoers filled 85% of the seats ahead of the movie launch. AMC stock was trading at the market price of $8.17 at the publication time.
The confidence in the film industry can potentially give a boost to cinema stocks considering the theatrical releases of movies like The Whale, A Man Called Otto, and more. Marvel movies especially have the potential to attract a lot of fans into the theaters and the revelation of Phase 5 and Phase 6.
Phase 5 is set to kick off the year with Antman and The Wasp: Quantumania where Kevin Feige will announce the biggest MCU villain to this date. AMC holdings generated $1.01 Billion in revenue during the third quarter, a $44.21 Million surprise. The financials also show a better than estimated EPS of ($0.20) and expects to lower the loss in the next earnings report.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
