Insights

Why AMC Entertainment Is Rising Today

What happened

Shares of AMC Entertainment (NYSE: AMC) were rising 5.5% higher at 10:57 a.m. Wednesday on no company-specific news. 

It comes after Disney‘s latest entry in the Toy Story franchise — Lightyear — failed to live up to expectations. A Wall Street analyst also lowered his price target on the stock yesterday, saying rampant inflation and rising gas prices were altering consumer spending priorities.

Image source: Getty Images.

So what

Lightyear had been expected to pull in as much as $135 million worldwide during its debut weekend, but managed to generate only $86 million in total, or what had been anticipated to be its domestic box office.

That slowed down the momentum movie theaters were enjoying as moviegoers came out to see Top Gun: Maverick and Jurassic World: Dominion in droves.

Whether the Disney bomb is a one-off event remains to be seen, but B. Riley analyst Eric Wold says a “rapidly changing” economic and consumer spending landscape may be more difficult for AMC to navigate.

When consumers are forced to pay more for food and basic necessities, extravagances like a night out at the movies are put on hold. Wold lowered his price target from $16 per share to $11 per share.

Now what

Because AMC is a meme stock, traders really don’t care about those things, looking instead to how often the movie theater’s shares are being chatted up on social media. That’s not a smart way to invest, as a business’s fundamentals will always be more important in the long run. 

Watching the antics of AMC and the gyrations of its stock from the sidelines is a wiser course to follow.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info