AMC Entertainment’s stock price has crashed by 21.3% this year and by 36% in the last 12 months. It has plunged by almost 98% from its highest point in 2021, erasing billions of dollars in value. It is now valued at $1.36 billion, much lower than Cinemark Holdings and Regal Cinemas.
AMC Entertainment struggles despite Box Office recovery
AMC Entertainment’s stock price has crashed this year, even as the Box Office industry showed signs of recovery.
Analysts anticipate that box office revenue will be about $9 billion this year, a 3-5% increase from a year earlier. This figure is still much lower than the performance during the pandemic, when the industry made over $11 billion.
The industry’s recovery is attributed to the weak performance in early 2024 when the Hollywood strikes impacted it.
At the same time, more movies are expected to be released this year. Over 110 films will be released, up from about 99 last year. Some of the most notable names to watch this year are Mission: Impossible – The Final Reckoning, Jurassic World: Rebirth, and Avatar.
This growth is expected to benefit AMC Entertainment, a company that operates over 540 locations in the US and 900 globally.
AMC to return to growth
The most recent financial results show that AMC Entertainment’s business slowed in the first quarter.
Its revenue retreated to $862.5 million, down from $951 million in the same quarter a year earlier. The company’s net loss increased to $202 million, up from $163.5 million a year earlier.
Worse, its EBITDA loss worsened to $58 million. This performance was due to the weak first quarter, which the management described as the worst since 1996.
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In a statement, the management noted that the industry will come back to life this year, with the highly opinionated Adam Aron saying:
“ If that level of activity were to continue, of course it would be highly problematic for movie theatres. But to the contrary, since April 1, movie theatre demand has been booming.”
He added:
“The April 2025 industry-wide domestic box office was double that of April 2024, and so far in May the box office again has been running at double the rate of a year ago.”
Wall Street analysts expect the upcoming results to show that AMC’s revenue rose by 26% in the current quarter to $1.3 billion. It will be followed by a 2.26% increase in the third quarter to $1.38 billion.
Analysts expect AMC’s annual revenue to grow by 7.15% to $4.97 billion, followed by 6.52% in 2026 to $5.29 billion.
Most importantly, analysts anticipate that the company’s earnings per share will improve to 68 cents from $1.28. It will then narrow to 36 cents next year. If it achieves this, there are signs that the stock price will rebound.
AMC stock price technical analysis
The daily chart shows that the AMC share price has moved sideways in the past few months. It is consolidating at the 50-day and 100-day Exponential Moving Averages (EMA).
The Average True Range (ATR) has plunged in the past few weeks, a sign that its volatility has waned. AMC stock’s Relative Strength Index (RSI) has dropped below the neutral point at 50.
Therefore, the stock will likely have a bullish breakout in the coming months, with the next point to watch being at $5. A drop below the support at $2.45 will invalidate the bullish outlook.
Read more: AMC stock price analysis: Wyckoff Theory points to more gains
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