AMC Entertainment has been the talk of the town ever since GameStop went quiet. The so called ‘Ape movement’ has resurrected a company that almost went bankrupt back in January. Fast forward 7 months later, they are sitting on a $2bn cash reserve and in a much stronger position.
The stock has been on a bearish path ever since went below the $40 mark after peaking at $72. Right now AMC has a strong support line at $30; every-time the stock price go below $30, avid investors lift it back above the $30 price.
AMC reported its second-quarter earnings on Monday after market close, smashing all WallStreet expectations. Unlike its competitors such as Regal Cinemas and Cinemark, AMC has been very pro-active in trying out other ways of generating revenue; Live UFC games and now concert movies with Chance the rapper. CEO of the Worlds largest theatre chain AMC, Adam Aron has also announced that AMC would be leasing 10 new theatres and by end of 2021, AMC would have the technology to accept Bitcoin for transactions.
With no debt maturities till 2023, Q3/Q4 trend line (in terms of revenue) remaining positive and over $2bn of unrestricted cash, it seems AMC’s bad days are over.
Key highlights from AMC’s earnings call.