AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Monday morning. The stock is trending heavily on social platforms, appearing to trend alongside GameStop Corp, which has seen renewed retail interest following resurfaced 2019 correspondence between investor Michael Burry and “Roaring Kitty“.
- AMC is feeling the pressure from bearish momentum. Review the technical setup here.
What To Know: Despite the stock’s recent month-long slide, AMC recently reported upbeat third-quarter results. Revenue of $1.3 billion topped Wall Street expectations, even as year-over-year sales dipped 3.6%.
While the company posted a net loss of $298 million, largely attributed to non-cash charges from a “transformative” debt refinancing, operational metrics improved. CEO Adam Aron highlighted record admissions revenue of $12.25 per patron and near-record food and beverage spending.
Operationally, the company is capitalizing on recent box office hits. AMC noted that “Wicked” recently delivered the company's biggest opening weekend for a PG- or G-rated movie since early 2023.
To further boost concession revenue, the chain launched its $29.99 annual “Popcorn Pass” in late November. Management expects the fourth quarter, supported by “Avatar: Fire and Ash,” to be the strongest in six years.
Benzinga Edge Rankings: Benzinga Edge data underscores the stock’s technical challenges, revealing negative price trends across all timeframes and a Momentum score of just 7.42, though the company maintains a Growth score of 33.89.
AMC Price Action: AMC Entertainment shares were down 3.67% at $2.36 at the time of publication on Monday, according to Benzinga Pro data.
Read Also: Will Santa Claus Rally Fail? Wall Street Divided Amid Mounting Volatility, Bearish Options Activity
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.
In the case of AMC Entertainment, which is trading at $2.36 as of publishing time, $100 would buy you 42.37 shares of stock.
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.
Image: Shutterstock
