Is AMC's surge sustainable?

pekss
06-03

Shares of $AMC Entertainment(AMC)$  had surged in pre-market trading today, despite no apparent good news, other than a Reddit post by stocks influencer Keith Gill, known as "Roaring Kitty," on his latest $116 million bet on meme stock GameStop. I suspect that that fuel speculative bets on other meme stocks, with AMC benefitting from the spillover effect.

However, this has done little to alleviate worries over the company's viability as a going concern. The rise of online streaming services and their growing popularity have weighed on AMC, whose profits in the fourth quarter of last year had been disappointing. With rising competition from the online streaming service providers the likes of $Netflix(NFLX)$  , $Walt Disney(DIS)$  and $Amazon.com(AMZN)$  , AMC has better quickly reinvent itself to stay competitive and remain relevant post pandemic, as the pandemic has changed forever the way many people would watch movies. Until a sound turnaround strategy is in place in its management, I believe that AMC's stock price has risen ahead of its fundamentals.

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.

Report

Comment（2）

  • Top
  • Latest
  • jace0777
    ·06-05
    Yep seems unsustainable
    Reply
    Report
  • assassinyj
    ·06-05
    😂
    Reply
    Report