Share price of $AMC Entertainment(AMC)$ has plunged so far this week after the movie theatre chain disclosed preliminary first-quarter earnings results.that fell below corresponding quarter of the prior year amidst rising competition from online streaming media service providers the likes of NetFlix and Disney. While AMC's management has expressed optimism in returning crowds to its cinemas post-pandemic, selling by insiders has diluted if not contradicted the message. Nevertheless, the debt crisis originally overhanging the largest theatre chain in the US appears to be improving after AMC announced that it would not be renewing a $225 million senior secured revolving-credit facility and had paid off any remaining obligations associated with it, while its CEO dismissed any risk of bankruptcy. AMC now has more space to implement its turnaround strategy to stay competitive amidst rising competition and remain relevant post pandemic.
Likewise, $Advanced Micro Devices(AMD)$ 's stock price also took a plunge in the after-hours trading after the semiconductor chip maker announced latest earnings that have failed to impress the market, dragging down its peers like $NVIDIA Corp(NVDA)$ and the broader semiconductor industry $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ . Despite the dismal results, disclosures by Meta Platforms, Microsoft, Google parent Alphabet and others in their earnings releases indicative of continual significant spendings on their artificial intelligence infrastructures should help Nvidia, AMD and the overall semiconductor industry in the near term as continual strong demands for AI chips offset weakness in demands for other product applications.
$Coinbase Global, Inc.(COIN)$ is slated to post its first-quarter earnings results on May 2. Cryptocurrencies have witnessed a return of volatility recently on risk-off with increasing bets of interest rates staying higher for longer amidst a sticky inflation and profit-taking after the bitcoin halving event that turned out to be a "buy the rumour, sell the news" episode. These are not helped by bitcoin and ether facing selling pressure after data revealed poor uptake this week for Hong Kong’s newly listed exchange-traded funds tied to bitcoin's and ether's spot prices - a first in Asia. Nevertheless, I believe that expectations of rate cuts in the later part of this year to avoid a recession in the US election year should help to support Coinbase's stock price as lower borrowing costs will encourage trading of risky assets like cryptocurrencies, while Coinbase benefits from increased trading volume on cryptocurrencies by the various spot-priced ETFs.
@TigerWire @TigerEvents @TigerStars @CaptainTiger @VideoLounge @MillionaireTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
