Analysts Believe AMC Stock Is Actually Worth Just $6 USD

One tenth of the all-time high reached earlier this week.

Entertainment 
20,896 Hypes 8 Comments

With retail investors and meme stock-interest driving the stock price of AMC to an all-time high recently, an analyst has now declared what they feel the stock is actually worth. Chad Benyon and his team at Macquarie have stressed their price target of $6 USD — less than half the price of a single ticket to an AMC theater.

The note released by the Macquarie team pointed to underlying issues at the company: “Despite shares now up 2,850% year-to-date (as of 6/2 close) vs. the S&P 500 of 12%, AMC balance sheet is still hampered by nearly $5.5 billion USD of debt as of the end of Q1 2021 and our projected leverage of 12.3x by year end 2022. AMC, the largest global player (945 theaters) should benefit from the rebound in theater demand, which is urgently needed in order for the company to address deferred rent ($450 million+ USD), maintenance capex (~$100 million USD), and high annual interest (~$420 million USD).” The analysts also believe that AMC could lost almost $2.5 billion USD between 2021 and 2023.

After stock price rose by almost 100% in one day, AMC announced it was issuing 11.55 million new shares, leading to a 31% tumble. On June 3, markets closed with AMC stock valued at $51.34 USD per share, following a peak at $62.55 USD — 10 times the Macquarie analysts’ valuation — earlier in the week.

In other business news, Bitcoin recently took a 5% dip following another Elon Musk tweet.

Read Full Article

What to Read Next

AMC Soars Above $10 Billion USD Market Value As Meme Stocks Rally
Tech 

AMC Soars Above $10 Billion USD Market Value As Meme Stocks Rally

As of 2:00 p.m. EDT on Thursday, shares were up 40%.

It's Estimated that Hedge Funds Lost Over $6 Billion USD From Shorting Meme Stocks
Tech

It's Estimated that Hedge Funds Lost Over $6 Billion USD From Shorting Meme Stocks

After surviving a beating earlier this year.

AMC Announces Sale of 11.55 Million Shares, Rattling Stock Price
Entertainment 

AMC Announces Sale of 11.55 Million Shares, Rattling Stock Price

The company has warned investors that they could risk “all or a substantial portion” of their money.


AMC Stock Surges 95% for a New All-Time High Share Price
Tech

AMC Stock Surges 95% for a New All-Time High Share Price

Shortly after announcing free popcorn to all retail investors.

John Mayer Returns With "Last Train Home" Video
Music

John Mayer Returns With "Last Train Home" Video

The first single taken from ‘Sob Rock.’

Crypto Exchange FTX Is Now Sponsoring TSM E-Sports Team
Gaming

Crypto Exchange FTX Is Now Sponsoring TSM E-Sports Team

In a move that will see TSM change its name to TSM FTX.

Apple to Update AirTags Over Stalking Concerns
Tech

Apple to Update AirTags Over Stalking Concerns

As well as launching an Android app to alert users.

Nike Delivers New Plant-Based Air Max 95 Designs
Footwear

Nike Delivers New Plant-Based Air Max 95 Designs

Arriving in “Coconut Milk” and “Obsidian Wheat/Blue.”

Issa Rae Set to Join ‘Spider-Man: Into the Spider-Verse’ Sequel Voice Cast
Entertainment

Issa Rae Set to Join ‘Spider-Man: Into the Spider-Verse’ Sequel Voice Cast

Joining Shameik Moore and Hailee Steinfeld.


Dime Taps Baker Skateboards For A Co-Branded Apparel and Skate Deck Collaboration
Fashion

Dime Taps Baker Skateboards For A Co-Branded Apparel and Skate Deck Collaboration

Featuring new graphics on hoodies, T-shirts and two skate decks.

Roddy Ricch Shares Enchanted Music Video For 'Late at Night'
Music

Roddy Ricch Shares Enchanted Music Video For 'Late at Night'

The X-directed visual gives a nod to Michael Jackson’s “Thriller.”

The All-New Air Jordan 6 Retro "Electric Green" Brings Back the Oregon Ducks Green
Fashion 

The All-New Air Jordan 6 Retro "Electric Green" Brings Back the Oregon Ducks Green

Presented by GOAT
GOAT rounds up the rest of the top Air Jordan 6s in celebration of its release.

Twitch Unveils New Animated Emotes To Liven Up Chats
Tech

Twitch Unveils New Animated Emotes To Liven Up Chats

The “unofficial (but official) language of Twitch.”

Adolescents Strives For Greatness with New "Mental Champion" Collection
Fashion

Adolescents Strives For Greatness with New "Mental Champion" Collection

A new label inspired by the rebellious energy of New York City.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Adblock Detected.

We charge advertisers instead of our readers. If you enjoy our content, please add us to your adblocker's whitelist. We'd really appreciated it.