AMC Stock: AMC Entertainment May See Further Momentum On new Breakout

The coronavirus pandemic and the associated social distancing rules are expected to be a thing of the past soon and there are now plenty of ‘reopening plays’ that investors are looking into.

AMC Stock: AMC Entertainment May See Further Momentum On new Breakout

One of those could be the stock of movie theatre operator AMC Entertainment Holdings (NYSE:AMC). In recent times, the stock has rallied on the back of a short squeeze from retail investors from the Reddit community WallStreetBets.

However, it is also necessary to keep in mind that people are slowly returning to their normal lives and going to the movies is going to be a big part of it. In addition to that, despite the massive losses owing the pandemic, the company has managed to strengthen its cash position and not too long ago, raised another $428 million by way of an equity offering. Hence, when movie theatres finally reopen, it might not take long for AMC’s revenues to go back to pre-pandemic levels. If that happens, then the stock might rebound strongly as well.

Michael Rowels

Weekend Contributor. Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.