The AMC stock price moved sideways on Tuesday after the company published the latest Q4 earnings. The stock is trading at $18.30 in extended hours, which is the same level where it ended the day on Tuesday. The shares have cratered by 35% in the past three months, bringing its total market cap to more than $9.42 billion.
AMC, the biggest movie theater company in the United States, published stronger than expected results on Tuesday. Its total revenue of $1.17 billion was better than estimates by $57 million while its EPS was better by 14 cents. In the earnings call, the company’s CEO predicted that AMC will have a better performance in 2022 than it did last year.
He cited the large slate of releases that are scheduled for this year like Marvel’s Dr. Strange, Jurassic World Dominion, Top Gun: Maverick, and LightYear. Other top blockbusters expected this year are The Rise of Guru, Thor, Black Panther, and Avatar. This is notable since these are some of the best-selling movies of all time. At the same time, the AMC stock price moved sideways as the CEO castigated “experts” for being wrong about the company. He said:
Remember the breathless reporting that AMC would file for bankruptcy in 2020. Wrong. Remember that otherwise highly respected experts were calling for the AMC share price to fall to $2, $1 or even $0.01 by February or March of 2022. We can now happily say because now it’s a simple matter of fact: they were wrong, they were wrong, they were wrong.”
AMC stock price forecast
The daily chart reveals that the AMC stock price has been in a bearish trend in the past few months. It has fallen by more than 74% from its all-time high that was reached in 2021. The chart has formed a descending channel that is shown in black. It remains below the 25-day and 50-day moving averages.
A closer look shows that the stock has found a small floor at around $14. Therefore, there is a likelihood that the stock will bounce back in the coming weeks as bulls target the next psychological level at $25. On the flip side, a drop below $14 will invalidate this view.