What's Going On With AMC Entertainment Stock?

AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Friday morning, hitting a new all-time low of $1.60 this week. The decline presents a sharp disconnect between market sentiment and the company's recent operational success driven by the release of Avatar: Fire and Ash. Here’s what investors need to know.

• AMC Entertainment shares are approaching critical lows. Why is AMC stock at lows?

What To Know: While James Cameron's latest blockbuster has grossed $483 million worldwide, AMC specifically reported its strongest pre-Christmas weekend since 2021. The film drew over 4 million guests to AMC venues, generating a reported $88 million domestically.

Notably, premium formats were a key driver, with 3D and IMAX screenings accounting for approximately 67% of admissions revenue. Additionally, AMC recently pivoted strategically, selling the majority of its stake in Hycroft Mining Holding Corporation (NASDAQ:HYMC) for $24.1 million to reinvest cash into its core exhibition business.

However, Wall Street remains fixated on long-term balance sheet concerns. The stock continues to struggle against resistance near the $2.00 level, weighed down by fears of future dilution.

An amended note agreement allows for up to $150 million in stock offerings beginning in February 2026. This financial overhang has seemingly overshadowed the return of CEO Adam Aron to full-time duties.

Despite the gloom, billionaire Robert Citrone of Discovery Capital Management has taken a massive contrarian position. Citrone recently acquired roughly 32.75 million shares, betting that the distressed equity is undervalued relative to its box office recovery.

Benzinga Edge Rankings: Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell. Notably, the Price Trend analysis currently signals negative momentum across the board, with the Short, Medium and Long-term indicators

AMC Price Action: AMC Entertainment Hldgs shares were down 1.19% at $1.655 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

Support at $1.63 is critical for AMC; a breach below this level could trigger further selling and push the stock into uncharted territory. Conversely, resistance is likely to be found around the $2.00 mark, where sellers may emerge to cap any potential rallies.

Read Also: AMC Entertainment Scores Its Biggest Pre-Christmas Holiday Weekend Since 2021

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