June 21, 2024

AMC Marvel Road Short Pressure May Occur

If nothing else, AMC Entertainment NYSE AMC stocks continue to prove its potential to shock the market. The news at this time was that the meme stock was able to report the rhythm of the first quarter earnings. Those news had prices that went up by more than 5%.

Having said that, let’s get into the details of what happened and what this means for forward-looking investors.

Beat salaries.

AMC’s most important news is that it has surprised the markets well with its first quarter strike. The steady decline in the slide in growth and meme stocks makes the stories particularly remarkable.

AMC has exceeded the consensus on many areas. The company was expected to send a non-GAAP loss of 63 cents per share of $ 743 million in revenue.

Additionally, year after year, the number of attendees increases. The company recorded 39.1 million attendees during the quarter, an increase of 6.8 million attendees last year.

However, it should be noted that despite the growth based on the good news, AMC stocks remain low for the year. In fact, despite the increase in inflation, stocks have dropped more than 50% of their value this year.

Brief Pressure Clock.

Short-term cramps are often triggered by unexpected good news that improves stock prices, or a gradual accumulation of buy pressure beyond the market pressure. Therefore, it is clear that AMC should now look at the shortcut as there is some unexpected good news that has befallen the company.

If not, it is usually necessary for the short interest to be more than 20% for short-term consolidation. According to the Wall Street Journal, short-term interest rates on AMC stocks are just below the 20% threshold.

Affects Other Meme Games.

AMC’s unpredictable earnings have caused GameStop (NYSE: GME) stocks to grow abruptly by more than 10% without any other news. Thankfully, it was only a few months ago that GameStop earnings caused AMC stocks to rise sharply.

So what should investors take from all of this?

What to Do With AMC Stock.

My view is that this is temporary news that investors may not be able to do much with. At the end of the day, AMC still lost $ 337.4 million in the first quarter.

If the market diverts this fact, the temporary rise in earnings will probably end. Predicting short-term congestion is very difficult, so without any good news, I would suggest not to go as AMC stock remains very low throughout the year.

At the day of publication, Alex Sirois did not have (directly or indirectly) any of the securities mentioned in this article.

Alex Sirois is an independent investor at InvestorPlace whose investment style in his stock focuses on long-term stock options, buying and holding, building wealth. He has worked in a few industries from e-commerce to translation to education and has used his MBA since. George Washington University, brings a variety of skills to refine his writing.