AMC Theatres has been around for a century. But a high-profile short squeeze coordinated on Reddit sent the company’s stock price soaring in early 2021. After a brief pause shares rocketed up again in late May, with the share price popping nearly 200% by early June. The flurry of activity created a newfound buzz for the world’s largest movie theater chain, which had been slammed by the coronavirus pandemic. Below, we’ll take a look at AMC stock and provide information that may help you decide whether to invest in the company. If you’re considering buying stock, think about working with a financial advisor who can help you craft an investment plan for your needs.
How to Buy AMC Stock With a Brokerage Account
Interested in buying AMC shares? The company does not offer a direct stock purchase plan, but you can purchase shares through a broker. With an online brokerage account, you can execute trades on your smartphone from anywhere. However, you’ll first want to determine how much money you want to invest in the company and at what share price you’re comfortable buying in.
Once you have decided how much stock you wish to purchase, you can use a market order or limit order to execute the buy. A market order will purchase the next available shares at whatever price the stock is currently trading. With a limit order, you can set the maximum price you’re willing to pay for shares. Keep in mind that the company trades on the New York Stock Exchange under the AMC ticker symbol.
How to Buy AMC Stock With a Financial Advisor
If you’re a new investor or simply want some extra help, working with a financial advisor is likely a great option. A professional advisor can buy and sell stocks for you, including AMC shares, and build a diversified portfolio that comprises a variety of assets. Financial advisors do charge fees for their services, but it may be worth the extra costs for the individual attention that you’ll receive. Plus, a financial planner can help you with other facets of your finances beyond your investment portfolio.
Company Overview of AMC
Founded in 1920, AMC Theatres owns or operates 950 theaters in 14 different countries. Based in Leawood, Kansas, the company introduced multiplex theaters in the 1960s and stadium-seating in the 1990s. Prior to 2016, the company primarily operated in the U.S. but expanded its international operations by acquiring European chains Odeon Cinemas, UCI Cinemas and Nordic Cinema Group.
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Financial Profile of AMC
AMC Theatres, which went public in 2013, posted modest gains in top line revenue between 2017 and 2019. But the coronavirus pandemic brought the company to the brink of bankruptcy in 2020, as it temporarily closed all of its theaters by March 17.
Limited operations resumed both domestically and internationally, but revenue dropped 77% in 2020 and 63 theaters closed permanently, according to AMC’s Form 10-K. Yet, the company staved off insolvency by raising $917 million in new capital, including $506 million from investors who purchased AMC shares. As of the end of 2020, AMC operated over 10,500 screens around the world.
Should You Buy AMC Stock?
The answer to this question likely depends on your long-term financial goals. AMC stock was particularly volatile in early 2021, opening the year at $2.20 per share before catapulting to $20.36 per share on Jan. 27 amid the Reddit short squeeze. By mid-April, AMC shares were trading at $9.90 — more than four times what the stock cost at the start of the year.
According to AMC’s Form 10-K, the company plans to continue to focus on customer engagement through its AMC Stubs customer loyalty program; the in-person experience at theaters by upgrading seating options and offering picture and sound innovations; as well as strategically closing underperforming theaters.
Tips for Investors
- A financial advisor can help you manage your investment portfolio and craft a plan for your needs and goals. SmartAsset’s free matching tool pairs you with up to three professionals in your area. If you’re ready, get started now.
- Whether you’re trading individual stocks, funding your 401(k) or buying and selling cryptocurrencies, be cognizant of the fees that various funds, brokers and platforms charge for their services. Fees and other expenses, especially those associated with employer-sponsored retirement plans, can eat into your earnings over time and slow down your path to retirement.
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