AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading flat Wednesday afternoon as investors await the company’s third-quarter earnings report, due after the market close. Here’s what investors need to know.
- AMC is underperforming relative to peers. Get the complete analysis here.
What To Know: Analysts expect mixed results for the quarter. Revenue is forecast to be around $1.23 billion, a decline from $1.35 billion in the same quarter last year, reflecting an 11.1% year-over-year drop in the overall domestic box office.
However, the company's loss is expected to narrow to approximately 20 cents per share, an improvement from a 33-cent loss a year ago. The quarter was supported by major releases including “Superman,” “Jurassic World Rebirth” and “The Fantastic Four’s First Steps.”
Beyond the quarterly numbers, investor focus is on AMC's new content strategy. The company is moving beyond its rivalry with Netflix Inc to forge a new partnership. The deal includes a wide theatrical release for the animated hit “KPop Demon Hunters” in 300 theaters and a special two-hour “Stranger Things” finale event on New Year’s Eve. The move is seen as a mutually beneficial strategy to provide AMC with exclusive content and open new revenue streams for Netflix.
Benzinga Edge Rankings: Reflecting the stock’s recent performance and valuation, Benzinga Edge data assigns AMC a low Value score of 19.15 and a Momentum score of just 12.29.
AMC Price Action: AMC Entertainment shares were up 0.40% at $2.52 at the time of publication on Wednesday. The stock is trading near its 52-week low of $2.45, according to Benzinga Pro data.
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How To Buy AMC Stock
By now you're likely curious about how to participate in the market for AMC Entertainment – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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