AMC stock price has been in a strong bearish trend this year as enthusiasm about the company and other meme stocks waned. The shares dropped to a low of $7.30, which is close to its year-to-date low of $5. It has plunged by more than 83% from its highest point in 2021. Its market cap has plunged to $3.9 billion while its short interest has risen to 19.76%.
AMC stock price has been under intense pressure this year as concerns about the movie theatre industry continues. Earlier this year, Cineworld warned that the sector will take a longer period than expected to recover. The firm, which is one of the biggest theatre chain in the world, recently filed for bankruptcy as it is burdened by over 6 billion in debts.
AMC recently published weak financial results. The firm said that its total revenue for the third quarter rose to $968 million compared to $763 million in the previous quarter. Net loss widened to more than $226 million while its EBITDA dropped to $7.5 million. The company burnt $179 million in the quarter while its available liquidity was $895 million.
The key challenge for AMC is that the pipeline of blockbuster movies is expected to be a bit weak in the coming year. Some of the most anticipated releases are Aquaman, Creed, John Wick, and Antman among others. Still, with companies like Disney and Warner Bros in turmoil, there is a likelihood that the industry will remain on edge.
The AMC share price has been in a strong bearish trend in the past few months. It has moved below the important support level at $13.26, which was the highest point in 2018. The stock has dropped below all moving averages while the stochastic oscillator has moved above the oversold level. It has also formed a small head and shoulders pattern.
Therefore, the AMC stock price will likely continue falling as sellers target the next key support level at $5. A move above the resistance at $10 will invalidate the bearish view.
This post was last modified on Nov 23, 2022, 09:18 GMT 09:18