AMC Stock Jumps 43% In A Week: Why Is It Time To Sell AMC?

This Wednesday the price is $ 0.6 more than last Wednesday. On September 2, it temporarily dropped from $46.82 to $42.64, then rallied to $ 44.58 and remained stable throughout the day. The next day, the cost plunged below $ 43 again. On September 8, it peaked at $ 49.25, which is $ 1.6 more than the day before. Today the worth dipped to $ 45.9, then commenced recovering and the current price is $ 47.39.
The price of its stock may remain high or even increase; AMC’s stock price doesn’t depend on its fundamentals. It has soared, while its operating performance is still caused for concern. In 2021 it will rise by almost 2000%. This is a significant growth in valuation, which would require a significant improvement in operating performance to justify such an increase. That hasn’t been the case for AMC. The shut-down order of the government caused damage to AMC in the 2020 fiscal year when revenue fell to $ 1.2 billion from $ 5.5 billion a year earlier. Possibly the AMC will never recover to the operating performance before the pandemic.

Robert McDowney

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