Why investors should be careful in front of AMCS Bitcoin dreams

The management team at AMC Entertainment Holdings Inc. (NYSE: AMC) Has done several attempts, some of the events that took place in 2021 Only a few bold dealers significantly richer overnight.

(Content modules: CompanyoverView | NYSE: AMC)

However, the price in AMC and these other Meme shares significantly corresponds to the speculative bladder, since the basics are ultimately important for reviews and where a share exchanges trade in the coming months and quarters. In this sense, the company just reported on its Last quarterly results for 2025A highly expected publication for several reasons.

The first reason is that management hovered Idea to buy Bitcoin As an additional advantage for the company’s balance sheet, which could therefore be much more worth in the future, the price of the Cryptocurrency Benchmark increase as it has been lately. Even if these plans should be carried out Investors should be careful To these sales outlets.

Price action: The first indication for AMC shares

In the past six months, stocks from AMC have declined by up to 36.8%The wider S&P 500 and all other entertainment stocks or retail shares that are considerably below average questioning with the exposure to consumer cyclicity that AMC is under average.

Some stocks occasionally see this type of Bearish Price Action However, keep a reasonably solid basic proposal for investors to take into account the price discounts and to look at even more. However, this is probably not the case with AMC shares, since the Bärische Price Action can be justified in a variety of ways today.

Financial breakdown in the AMC quarter

So what exactly is driving Income and income In a company like AMC? Film cinemas are inpatient shops that rely exclusively on foot traffic and the presence of the show, and AMC has not got involved in a good start in relation to the latest press release from the quarterly profits.

The participation achieved 41.9 million In the first quarter of 2025, a significant decline of up to 10.1% is compared to the number of visitors recorded in the same quarter of the previous year. This speaks volumes about the budget awareness of consumers and the loss of the place of cinema as a preferred experience in today’s economy.

(Content modules: forecast | NYSE: AMC)

This headwind translated into a network Sales decline of 9.3% For the year, which could not even be compensated for by a bonus for snacks or other secondary objects associated with the typical cinema experience. This shows that the brand and business model lose price current and market share in real time.

The company recorded a net loss of $ 202.1 million in the first quarter of 2025, which increased compared to the previous year’s quarter and its net loss of $ 163.5 million. No matter how Management attempts to sell a recovery Or are recovering that investors have to recognize that they are exposed to a very complex and challenging financial situation with AMC.

The worst thing about AMC’s financial make -up is exactly how the company can stop the lights, even though they report the losses after quarter after quarter. With regard to the cash flow declaration, investors can find that up to 158 million US dollars were received by issuing more shares in the market.

In other words, Current shareholders are watered in aggressively, often only so that AMC can continue to operate a loss model and a financial structure, which effectively subsidizes the cinema business. If the charity cannot be reached in a portfolio, the future of AMC should be avoided.

The market agrees, here is no charity organization

To know that this hole digs deeper and deeper, analysts Citigroup decided to repeat their sales rating At AMC shares at the end of April 2024. This time they also lowered their ratings from USD 2.80 per share to $ 2.30 per share, which requires so much Disadvantage of 15.5% from where the shares are acting today.

This does not even take into account the latest quarterly profits that could influence these analysts to represent an even harder view of the company. Of course, some could say that the worst is evaluated at the stock at these low prices, but that is anything but the truth.

Empty sellers increased their positions last monthEnough to increase the short interest of the company by 20.6% when it comes to not trusting management, the ability to shoot things internally, and investors should take this into account next time if you hear dreams of Bitcoin or other obscure strategies to support the course of the share.

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