AMC Stock Forecast: AMC to venture out in new Endeavour with Zoom

AMC Stock Forecast: AMC to venture out in new Endeavour with Zoom

AMC Stock Forecast: AMC issued senior secured notes @ 12.75% with a principal amount of $400m


AMC Stock Forecast: Performance Chart

AMC Stock Forecast: Why has the stock declined in the past 5 days?

AMC stock declined at least -10.37% in the past 5 days. The meme stock that was in price levels of 40 – 60 during the previous year, today (10/11/22) is painstakingly drowned to $5.19. The fall in price could be because of the following reasons –

  • There are not as many movies in theaters as before -The company justifies its recent dip by stating that the volume of production has still not hit pre-pandemic levels. Due to covid, Movie productions were also stopped in last year and the production houses faced a shortage in liquidity.
  • Preference share outstanding of a subsidiary company (APE) – The purpose of issuing preference shares was to raise money from diluting the AMC stock which failed miserably. The issuance of APE was carried out to decrease the debt of $10 billion piling up but the price has also plummeted to $1.51.furthermore, AMC plans to sell its APE  425m shares out of which it has already sold 14.9 million shares.
  • The company’s overly ambitious goals –AMC is still acquiring new screens and replacing underperforming screens. An analyst from Wedbush says that AMC will be expanding its global network and upgrading theaters in Europe in the coming quarters. It means that there can be steeper net losses for the coming year.

AMC Stock Forecast: Latest Video

YouTube video

AMC Stock Forecast for the next 12 months

Average Price Target$34.8
CNBC$95
Wedbush$2
B. Riley$7.5

AMC Stock Forecast: Latest News

  • AMC Refinanced a loan – AMC issued senior secured notes @ 12.75% with a principal amount of $400m. With that cash, it funded the repayment of a loan of $471m from its subsidiary Odeon. This measure has brought down AMC’s loan to $143.6m.
  • Zoom partners with AMC – AMC’s partnership have unveiled a new stream of revenue. As per the company’s opinion, there is a lack of content in the market, so this type of unconventional partnership amongst companies that are in contrasting fields of work can prove to be fruitful. “AMC has an abundance of attractive theatres at centrally located venues in city after city after city, each with ample seating capacity, especially so during daytime hours on weekdays when most meetings take place,” said Adam Aron, chairman, and CEO of AMC. If this form of business becomes successful then it may broaden the horizons to stand-up comedians, and singers for live concerts at different places performing at the same time.

AMC Stock Forecast: Quarter 3 results

  • Revenue grew to $968.4 m; it is a 26.9% jump from 2021 Q3.
  • It incurred a net loss of $226.9m, an increase of 2.7% from Q3 of 2021 which is $224.2m.
  • Adjusted EBITDA has grown to a loss of $12.9m from last year’s  3rd Quarter loss amounting to $5.4m.
  • Adjusted loss per share has decreased to -0.20 from the previous year’s quarters of -0.20.
  • In 3rd quarter of 2021, free cash flow stood up at -$138.9 and it has deepened to -$278.1m.
  • AMC  has a liquidity of $895.8m, inclusive of the $211.2m undrawn capacity of the revolving credit facility. 

AMC is not expected to post a profit in 2022, 2023, or 2024.

Also Read: Nio Stock Forecast 2022

AMC Stock Forecast Today

Overall OutlookNeutral
1. Market's WisdomPartially Positive
1a. Market DataPartially Positive
1b. Technical RecommendationNeutral
2. Crowd's WisdomNeutral
2a. Social Media BuzzNeutral
2b. Social Media SentimentNeutral

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.

This site uses Akismet to reduce spam. Learn how your comment data is processed.