Buy AMC shares: analysis and forecast
Published: 25 May 2021 by Andrew
AMC Entertainment Holdings is the largest theater operator in the world and was also one of the giants most affected by the pandemic that erupted in 2020. Now the stock seems to be showing encouraging signs and investors started to buy AMC shares again, but is it the right choice?
The cinemas have been completely closed for several months and the company has tried to stay afloat by relying on streaming and small productions, but now it wants to redeem itself.
You will understand if it will succeed and if the title is really a good deal by reading our detailed guide.
We know you have many questions buzzing in your head and to answer all of them we will analyze:
- The economic situation of the company
- The performance of the stock after the crisis
- Analysts’ forecasts
Once you have read this article, you will have a much clearer idea about this investment.
Remember that in addition to the title it is essential to choose the intermediary well, they are not all the same, rely exclusively on Brokers with a regular CONSOB or CySEC license, just like those we have listed below, among which you will also find eToro, the market leader :
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
AMC: live quotationClick here for the real time quotation of AMC stock price
What is AMC?
AMC stands for American Multi Cinema and is currently a truly gigantic US holding company, the largest chain of cinemas in the world.
The birth dates back to 1920 and the main office is in Leawood, Kansas.
Over the years the group has acquired numerous other chains, such as Odeon Cinemas, UCI Cinemas and Carmike Cinemas. These acquisitions allowed it to become, in 2016, the global giant it is today.
AMC has 2,866 screens in 358 theaters in Europe and 7,967 screens in 620 theaters in the United States.
It went public in 2012, on the NYSE and the group is controlled by the Chinese group Wanda. Currently, this control is less strong due to new funding and the continued dilution of shares, which saw the entry of $ 600 million just this year.
How to buy AMC shares
Want to know if buying AMC stock is a good deal? Ok but be patient a little longer, we will see it shortly.
First we need to understand how to buy AMC shares, so as to be ready for any investment.
There are two intermediaries on the market and with both it is possible to do this type of trading, even if their characteristics are very different:
- Traditional brokers are undoubtedly more expensive, they require the opening of a securities account, the stamp duty is paid and there are commissions on each operation that you are going to perform.
- CFD Brokers, on the other hand, are certainly more affordable for every “pocket”. There are no commissions, there is no stamp duty, there is no securities account. Furthermore, through these intermediaries you can aim both upwards and downwards, a nice advantage in certain market situations.
If we want, the former are more suitable for long-term investing, keeping the shares in “a drawer” for months or even years.
The latter are perfect for online trading, to make many daily operations in search of small but frequent profits.
Best Platform to buy AMC shares
The choice of the trading platform, as we mentioned at the beginning, must never be separated from security.
So first check that the broker you are interested in has at least a regular license, preferably issued by CONSOB, CySEC or FCA.
The platforms listed in the introduction have all these prerogatives, but to narrow the field we have made a comparison between the services offered and the technical characteristics of these intermediaries and we have drawn up a partial ranking.
These are the first 3 Brokers resulting from the comparison, let’s discover their characteristics in the next paragraphs:
eToro probably does not need many introductions given that we are talking about the most popular online broker on the planet.
Its CONSOB license is just one of the many authorizations it holds. Its reliability has convinced over 20 million users around the world.
But it is the trading platform that decrees its success, here it is below with the AMC CFD in a screenshot:
How do you buy AMC shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the AMC stock and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
Among the numerous services offered by this Broker we cannot help but mention the famous Copy Trading.
It is an automatic tool that copies the trading operations of the best traders (chosen by you on the platform) and faithfully reports them on your account.
In practice, you will get the same results as the most experienced eToro traders, without doing anything!
This system is an eToro patent and represents industry excellence.
If you want to see what results the traders you might copy get, here’s a screenshot:
Click here and choose which trader to copy
ForexTB has quickly become a broker much appreciated by investors, both for its reliability and for the numerous services offered.
Reliability is confirmed by a prestigious CySEC license that this intermediary has been able to conquer.
But the services are really the masters. Let’s start with the most famous: the Trading Course.
This ebook explains in great detail how to trade online and what strategies to adopt to obtain constant profits, right away.
The fact that it is totally free has made it very popular and appreciated, here is the link to download it:Click here and download the Trading Course for free
ForexTB’s offer finds its maximum expression in the two trading platforms that it makes available to investors:
- Metatrader is a complete platform full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
To buy AMC shares on ForexTB you have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select the AMC stock and click Buy (or Sell to sell short)
- Decide the amount to invest.
Trade.com immediately stood out for its focus on novice and less capitalized investors.
To favor the latter, in fact, it allowed to open a trading account by depositing only 100 euros, a figure within the reach of all budgets.
The CONSOB license seals the security of this intermediary with a highly prestigious authorization.
To improve the preparation and consequently the results of the traders, this Broker has created a Trading Course that has immediately obtained much appreciation.
The pdf is a sort of technical analysis manual and allows you to quickly learn the trader’s secrets and the best investment strategies.
Trade.com allows you to download this course for free, even if the value of the ebook is very high, here is the link to download it:Download the Trading Course for free by clicking here
Trade.com offers two very professional trading platforms, which you can freely select: The MT4 and the Web Platform, both of which are free.
To buy AMC shares on Trade.com you need to follow these instructions:
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the AMC stock and click “Buy” to buy or “Sell” to short sell
- Decide how much to invest in the operation
AMC Business Model
The AMC business model is based on a network of globally distributed cinemas as well as numerous theaters and large screening rooms.
Currently, the company manages about 1000 cinemas and 10,700 screens around the world, which bring a very high turnover to the group.
Let’s see what are the relevant data of AMC:
Quotation: NYSE (AMC)
Member of the Russel 2000
Founded December 14, 1920 in Kansas City, Missouri, USA
Founders: Edward Durwood, Maurice Durwood, Barney Durwood
Leawood Headquarters, Kansas, USA
Significant numbers: 978 rooms and 10,833 screens
CEO: Adam Aron
Revenue: $ 5.461 billion (2018)
Net profit: $ 110.1 million (2018)
Employees: 4,408 full-time and 35,754 part-time (2018)
Is it worth to buy AMC shares?
AMC stock suffered a major meltdown following the outbreak of the global pandemic in 2020.
But now the shares seem to be starting to move, there is a lot of excitement around the stock and the volatility is quite high.
Here is a graph showing the performance of AMC shares in recent years. 2020 dealt a severe blow to the title but the trend was already down by the end of 2018:
This year there were strong signs of recovery with sharp spikes in the share price, followed by equally rapid retracements.
AMC shares forum
It is the discussion forums that generate these sudden swings in the price of AMC shares.
Online trading forums are a means of pure speculation, and they are very dangerous.
Large numbers of traders agree to raise the price of a stock and then let it collapse and make sensational profits in a short time.
It had already happened for GameStop and is happening for AMC as well.
Unfortunately, the action often does not work and for once you are able to speculate, 10 times you lose money in a stock that is worth very little. So stay away from trading forums!
Ultimately, buying AMC shares can be very convenient as long as you are speculating in the short term.
Below we can see the main competitors of AMC in the international field:
- Rave Cinemas
- Harkins Theatres
AMC’s market value has soared in these first months of 2021 but is not supported by fundamentals.
This is a classic example of Growth investing and to take advantage of it it is necessary to trade the stock up and down by making numerous small short and very short-term transactions.
The long-term forecasts are still uncertain and the timelines are very long, so take advantage of the CFD brokers we presented and follow the stock swings to look for small profits instead of hoping for large price movements, which often remain disappointing.
Now let’s see what some of the most renowned market analysts think of AMC shares:
- Zacks Investment Research downgraded AMC Entertainment from a “buy” rating to a “pending” rating.
- Wedbush raised AMC Entertainment’s target price from $ 2.50 to $ 5.00 and gave the title a “neutral” rating.
- Loop Capital reaffirmed a “sell” rating and issued a target price of $ 1.00 on AMC Entertainment’s stock.
- MKM Partners downgraded AMC Entertainment from a “neutral” rating to a “sell” rating and set a target price of $ 1.00 for the company.
- UBS Group has issued a “sell” rating for the company.
AMC shares target price
By looking at 10 Wall Street analysts who have issued AMC Entertainment valuations and price targets over the past few months, we have formulated an average price target.
The 12-month target price is $ 4.56, forecasting a possible drop of 63.70% for the stock.
The high price target for AMC is $ 16.00 and the low price target is $ 1.00.
There are currently 5 sell ratings, 4 suspension ratings and 1 buy rating for the stock, confirming the anomalous situation of AMC shares, which do not yet seem ready for a lasting uptrend.
The film industry has suffered considerable damage due to Covid-19 and AMC, despite being a giant, is one of the companies that has suffered most from the closure of theaters.
Buying AMC shares can be a good investment for speculative purposes only. Currently the stock is volatile and thanks to the possibilities to aim both upwards and downwards offered by CFD Brokers, it offers significant profit possibilities, but only in the short term.
It takes experience to earn when a stock fluctuates in this way and before investing any money it is preferable to do some tests in Demo, so as not to take risks.
Once you have perfected the strategy you can easily switch to the real account with the broker of your choice.
Here are the links to register for free to the Demo accounts offered by the main CFD Brokers:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Register on Trade.com and try the Demo account by clicking here
The stock moves abnormally and swings rapidly because it is prey to speculators.
Forecasts are still very uncertain, it will take time before a recovery of the fundamentals and consequently of the title.
The 12-month target price for AMC shares is $ 4.56
Given the volatility of the stock, the most suitable intermediaries for investment are CFD brokers such as eToro, they are commission-free and allow you to aim both upwards and downwards.