The Cineworld share price is in the spotlight today as investors digest the latest earnings by AMC Entertainment. CINE shares ended the day at 92.84p, which was 25% below its highest level this year.
What happened: Cineworld and AMC Holdings are the biggest theater companies in the world. The two companies were among the worst-affected stocks by the coronavirus pandemic. In most places, these companies have been forced to close their stores since they are considered non-essential businesses. Still, with the vaccination trend going on strongly, there is a possibility that these companies will have a strong recovery.
In a report on Thursday, AMC said that its net loss for the quarter was more than $567.2 million. This was a bigger loss than most analysts were expecting. The company made a revenue of more than $143 million, a 84% decline from the same quarter in 2020. This revenue came from the fact that the firm has already reopened most of its stores in the United States. It has also started to slowly reopen its European theatres.
The Cineworld share price is also in the spotlight after reports emerged that Legal & General was considering voting against the company’s board pay committee. This happened as the company recommended hefty payouts of about 60 million pounds for top two executives even as it furloughed its employees. The company said:
“We have strong concerns about the structure of the long-term incentive plan granted to the executives, and its misalignment with the long-term interests of the company and other stakeholders.”
Cineworld share price forecast
Turning to the daily chart, we see that the Cineworld share price has been in an overall bearish trend. It has recently moved below the 23.6% Fibonacci retracement level. It also seems to have formed a small descending triangle pattern that is shown in black. The shares have already moved below the 50-day EMA and are about to cross the 100-day EMA.
Therefore, because a descending triangle is usually bearish, I suspect that the stock will drop to the 38.2% retracement level at 82.50p. However, a move above the psychological level of 100p will invalidate this trend.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.