If I’d invested £500 in AMC Entertainment shares 1 year ago, here’s how much I’d have now!
, 2022-12-31 02:59:46,
Image source: Getty Images
AMC Entertainment (New York Stock Exchange: AMC) shares fell 80% in 2022, making it one of the worst performing US stocks. So what’s behind the fall? Should I consider these tarnished entertainment stocks for my portfolio?
meme status
AMC is an American movie theater chain. Owns, operates, or has interests in movie theaters located primarily in the United States and Europe.
The company was on the verge of bankruptcy in 2021, but retail investors gave it a new lease of life.
AMC became a call meme actionsin that it gained viral popularity due to increased social sentiment. Investors flooded into the company in May 2021, driving the share price from around $10 to over $50.
Today the share is trading at around $5. Allowing for exchange rate fluctuations, if you had invested £500 in AMC a year ago, you would have just over £100 today. That would be a terrible return on my investment.
problems remain
AMC hatched several plans to raise more capital to pay off its debts and invest in acquisitions, theater upgrades, a popcorn business and even a gold mine after being bailed out by retail investors in 2021.
However, the firm has struggled to post a profit in recent quarters. Debt is a major problem here: it stands at $5 billion, almost twice the market capitalization of the stock.
This debt was largely accumulated prior to the pandemic, due to the acquisition of several smaller movie theater chains and investment in upgrading their theaters…
,
To read the original article from news.google.com, Click here
Private Internet Access gives you unparalleled access to thousands
of next-gen servers in over 83 countries and each US state. Your
VPN experience will always be fast, smooth, and reliable.
