To The Moon

$GameStop(GME)$ $AMC Entertainment(AMC)$

At the height of the 2021 retail investor revolution, two names captured Wall Street’s attention—and its collective ire—like no others: AMC Entertainment Holdings (NYSE: AMC) and GameStop Corp. (NYSE: GME). These two struggling companies became symbols of the so-called meme stock phenomenon, as armies of retail traders coordinated online to send their stock prices soaring in a spectacular rebellion against short sellers and institutional investors.

Fast forward to 2025, and both companies find themselves well off their pandemic-era highs, each grappling with fundamental challenges to their business models and shareholder skepticism about their long-term viability. Yet, with recent rallies reigniting interest in meme stocks, investors are once again asking: between AMC and GameStop, which has the stronger case for a sustainable turnaround?

This analysis examines the business fundamentals, debt loads, industry trends, leadership strategies, and market sentiment surrounding these two high-profile meme stocks—and offers a verdict on which, if either, has a more credible path forward.

From Mania to Maturity: How AMC and GameStop Became Meme Legends

AMC and GameStop’s journeys to meme-stock fame share many parallels. Both were written off by Wall Street as relics of bygone eras—movie theaters and brick-and-mortar game retailers in a world increasingly dominated by streaming and digital downloads. Both attracted high short interest, making them prime targets for a retail-driven short squeeze. And both experienced astronomical price appreciation during the first half of 2021, defying all conventional valuation metrics.

Yet the similarities largely end there.

• AMC leaned heavily into its retail investor base, dubbing them “Apes,” and issued millions of new shares to raise capital, albeit at the cost of significant dilution.

• GameStop, by contrast, issued far fewer shares but embarked on an ambitious corporate transformation plan under new leadership, signaling a desire to become a digitally savvy gaming and e-commerce company.

The divergent strategies reflect differing visions—and differing prospects—for each company’s turnaround potential.

Business Fundamentals: The State of Play

At their core, AMC and GameStop face distinctly different industry dynamics.

AMC operates in the global theatrical exhibition business, which has faced secular decline for years as consumers shift toward home-based streaming entertainment. Although 2024 saw a modest rebound in box office receipts thanks to a slate of blockbuster films, overall attendance remains well below pre-pandemic levels, and competition from streaming giants continues to intensify. AMC’s massive physical footprint—over 900 theaters worldwide—remains both its greatest asset and its greatest liability.

GameStop, meanwhile, sits at the intersection of gaming hardware, software, and collectibles retail. Unlike the cinema industry, video gaming as a whole is thriving, with global revenues exceeding $200 billion annually. However, the retail segment of gaming continues to erode, as more consumers purchase games digitally or subscribe to streaming services. GameStop’s core business of selling physical discs and consoles in malls faces a long-term headwind, though its collectibles segment has provided some growth.

In short, AMC’s industry appears more structurally challenged, whereas GameStop operates in a growing sector, albeit one moving away from its core model.

Financial Health: Debt vs. Cash

One of the most critical differentiators between AMC and GameStop is their respective balance sheets.

AMC took on substantial debt during the pandemic to survive. As of mid-2025, AMC carries over $4.5 billion in long-term debt, much of it at high interest rates. Although recent debt restructuring has improved liquidity, the company remains highly leveraged, with significant annual interest obligations eating into cash flow.

GameStop, conversely, used its meme-stock windfall to issue shares and pay down debt. Today, the company maintains a net cash position, giving it considerable financial flexibility to invest in its transformation strategy or weather prolonged downturns.

For investors focused on balance sheet strength, GameStop’s clean slate is far more appealing than AMC’s debt-laden structure.

Leadership and Strategy: Vision Matters

The paths chosen by AMC and GameStop leadership teams also highlight different approaches to turnaround efforts.

AMC CEO Adam Aron has leaned fully into his retail investor base, capitalizing on the meme stock phenomenon to raise capital and keep the company afloat. He has launched a series of creative but arguably tangential initiatives—including retail popcorn sales and branded NFTs—while maintaining a largely defensive stance against the company’s long-term secular headwinds. Critics argue these moves are distractions rather than solutions to the core problem of declining theater attendance.

GameStop, under the leadership of activist investor Ryan Cohen and a revamped executive team, has articulated a vision to transform into a technology-driven, customer-focused gaming and collectibles company. The company has invested in e-commerce infrastructure, revamped its app, and explored opportunities in Web3 and digital gaming. Although execution has been uneven and progress slow, the strategy demonstrates an awareness of industry trends and a willingness to pivot decisively.

Leadership discipline and strategic clarity favor GameStop over AMC at this stage.

Industry Trends: Which Tailwinds Matter?

Both companies face headwinds, but the strength of the underlying industries diverges.

The global gaming industry continues to grow steadily, driven by expanding demographics, mobile gaming, esports, and new platforms. While GameStop’s legacy retail model is declining, the overall sector offers opportunities to reinvent the business.

Conversely, the cinema industry faces more entrenched challenges. Studios are increasingly bypassing theaters for direct-to-streaming releases, and consumers have demonstrated a lasting preference for at-home viewing. Even with occasional box office successes, the long-term trajectory of theatrical exhibition remains uncertain.

In essence, GameStop is trying to pivot within a growing industry, while AMC is trying to stabilize in a shrinking one.

Market Sentiment and Retail Support

One cannot overlook the importance of market psychology when evaluating meme stocks.

AMC retains an extraordinarily loyal retail investor base, the so-called “Ape Army,” which continues to support the stock through social media campaigns and buying pressure. This emotional connection has allowed AMC to repeatedly tap capital markets and stave off bankruptcy, despite weak fundamentals.

GameStop also has a passionate retail following, though it has quieted somewhat since the heights of 2021. Sentiment among GameStop shareholders remains strong, but less vocally organized compared to AMC’s Apes.

Both companies benefit from a residual meme-stock premium, but AMC arguably has a stronger, more vocal base—though that loyalty has its limits if financial performance does not improve.

Valuation: Still Speculative

Even after steep declines from their peaks, both AMC and GameStop continue to trade at valuations well above what fundamentals alone would justify.

AMC trades at a steep multiple of its meager revenues and remains unprofitable. GameStop, while better capitalized, also trades at a premium to its earnings potential, reflecting high expectations for its transformation plan.

For value-oriented investors, neither stock appears attractive at current levels, but GameStop arguably has more upside potential if its strategic pivot succeeds.

Conclusion: Which Has Better Turnaround Potential?

When weighing all factors—industry trends, financial health, strategic clarity, and market sentiment—it is clear that GameStop holds the stronger hand in terms of turnaround potential.

Key Takeaways:

• Balance Sheet Strength: GameStop’s cash-rich, debt-free balance sheet provides room to invest and adapt.

• Industry Tailwinds: The gaming industry continues to grow, offering opportunities even as retail declines.

• Strategic Vision: GameStop has articulated a credible, forward-looking transformation plan.

• Management Discipline: Leadership has focused on fundamentals rather than retail pandering. AMC’s Challenges: Conversely, AMC’s heavy debt load, shrinking industry, and lack of a compelling strategic pivot make its turnaround prospects far more tenuous.

Verdict:

For investors willing to speculate on a meme stock with the potential for long-term transformation, GameStop is the more compelling choice. AMC may continue to rally on retail enthusiasm and short squeezes, but its structural challenges and leveraged balance sheet make a sustainable recovery unlikely.

Both remain high-risk, high-volatility investments better suited for speculative portfolios than long-term retirement accounts.

Final Word: Meme Stocks, Two Years Later

AMC and GameStop captured the imagination of retail investors and disrupted traditional market narratives. But as the dust settles, it becomes clear that not all meme stocks are created equal.

GameStop at least has a fighting chance, supported by a growing industry, a solid balance sheet, and a willingness to adapt. AMC, while beloved by its loyal Apes, is fighting a far tougher battle against structural decline and crushing debt.

Investors should tread carefully and recognize that sentiment can only take a company so far—ultimately, fundamentals and strategy will determine who survives and thrives in the post-meme era.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

@Daily_Discussion @TigerPM @TigerObserver @Tiger_comments @TigerClub