AMC Theatres is not a new name; it has been a century since its inception.
In 2021, the company’s stock value rose substantially, arousing even more interest of investors in buying shares of AMC.
If you too have been thinking “Should I buy AMC Entertainment stock” then reading this article will be of great help to you.
In this article, let us try to understand whether to buy the stock or not.
Having said that, it is always best for investors to obtain the services of a reputed financial advisor to tailor their investment plan. This way, they will be able to maximize their returns.
Now, coming back to AMC stock below is our take on it.
How do you buy AMC stock?
If you plan to buy AMC stock, you will need to have an account with a brokerage firm as the company doesn’t offer a direct stock purchase option. An online brokerage account will help you to trade from the comfort of your home or on the go. You will be able to buy and sell stocks from a desktop, laptop, or smartphone wherever you can get a decent internet connection. You will next need to decide how much money you wish to invest in the stock. There are two options that you can choose from when buying the share. Market orders and Limit orders. In a market order, you can buy the stock at the price it is currently trading in the market. The limit order helps you buy the stock at a price that you set. If that price is reached in the market, your order will automatically be executed.
You can also buy shares of AMC with the help of a financial advisor. This is particularly beneficial for those people who have started their investment journey in the recent past and lack the experience or skill to make decisions for themselves. A professional financial advisor will help you with buying AMC shares. The advisor will also provide inputs to you on how to build your portfolio. Advisors charge fees for their services, but it is generally worth the money because the individual attention you get from the advisor will compensate for the money you spent.
AMC and its profile
AMC is a true entertainment giant in the US and has a global presence. The company was founded in 1920. Today it either owns or operates 950 theatres across 14 different countries. From the 1990s, the company expanded its operations outside of the USA in an aggressive manner. The company operates 590 theatres in the USA in 44 states and the District of Columbia. Internationally it operates 360 theatres in 12 European countries and Saudi Arabia.
The company listed itself in the market and went public in the year 2013. The company showed modest gains in its revenue in 2017 and 2019. However, the COVID-19 pandemic affected it badly, and it went almost to the brink of bankruptcy. Its operations did revive partially later on in 2020, but the damage was done. Revenue took a dip of 77% in 2020, and it had to close down 63 theatres. The company somehow managed to avoid insolvency by raising a capital of $917 million. Out of this, $506 million was raised by selling AMC shares to investors. By the end of 2020, AMC was still operating 10,500 screens across the world.
Is it worth buying shares of AMC?
This question can only be answered once the long-term financial goals of the investor are known. AMC stock has been volatile in 2021. This tells a lot about the company and how people see it. The year opened with the stock at $2.20, but it rose unbelievably to $20.36 per share on January 27th. Again, by mid-April, it was priced at $ 9.90 per share. Though this is an excellent gain compared to what the stock was trading at the beginning of the year, we cannot deny that the volatility is tremendous.
The company has made it clear that it is going to focus on customer engagement as usual. This will be done through the AMC stubs customer loyalty program. The company will also enhance customer experience by improving seating and upgrading the picture and sound. They will be closing underperforming theatres to reduce losses.