Disclaimer – Your capital is at risk, past performance does not indicate future results
The return of ‘Roaring Kitty’ has spurred a new meme rally; with AMC stock increasing by over 80% this week. However, AMC is down 87% on a one-year basis, meaning investors should consider whether or not the current rally is temporary.
In this guide, we explore the AMC investment thesis, including its short and long-term potential. We also explain how to buy AMC stock with a regulated online broker.
While AMC stock can be purchased from online brokers, we prefer eToro. It offers AMC stock in fractional shares; the minimum investment requirement is just $10. eToro – which is regulated in multiple jurisdictions, doesn’t charge commissions when trading stocks. It also offers free and instant USD payments. Read on to learn how to invest in AMC stock on eToro in under five minutes. Investors will need to open an eToro account before buying AMC stock. eToro has a fast sign-up process. Click the ‘Sign Up’ button and type in some personal information. This includes a name, residential address, date of birth, and social security number. Disclaimer – your capital is at risk, your investment can go up or down depending on market conditions. eToro will send a code to your cell phone – type it in to complete the account opening process. Another required step is to upload some verification documents. First, eToro needs a government-issued ID, such as a driver’s license or state ID card. Second, eToro needs a proof of address document that was issued in the prior three months. Examples include an electricity bill or bank statement, although other document types are also accepted. Investment stakes should be carefully considered when buying AMC stock. The firm has seen an 87% stock price decline in the past 12 months. If it wasn’t for AMC’s recent rally – where stocks have increased by 80% in the past week, annual declines would be considerably greater. Disclaimer – past results do not indicate future returns. Moreover, AMC operates in a declining market, considering the sizable shift to digital streaming. With this in mind, investment sizes should be based on affordability and how much risk you’re comfortable staking. This is why eToro is a great fit for budget investors; the minimum AMC stock purchase requirement is just $10. The next step is to deposit some funds into the newly created eToro account. US and UK investors must meet a minimum deposit requirement of $10. The minimum increases to $50 for most other nationalities. eToro supports a wide range of deposit methods, including: In terms of fees, there’s no charge for USD payments. Other currencies, such as GBP and EUR, attract FX fees. This starts from 1.5% of the deposit amount. eToro supports thousands of stocks, so it’s easiest to use the search bar when finding AMC. Just type in ‘AMC’ and click the ‘Trade’ button when it appears. Next, you’ll need to choose between a market or limit order. Simply select the ‘Order Type’ button to choose your preferred order. The final step is to type in the total investment size (in USD). As mentioned, you can invest any amount from $10 upwards. In our example, we’re placing a $500 market order. This converts to 91.06 AMC stocks. Click on the ‘Buy’ button to complete the investment. Disclaimer – your investment can go up or down depending on the market conditions. Note: If you opt for a limit order, it will remain pending until the chosen price is triggered.
Your capital is at risk, past performance does not indicate future results Deciding where to buy AMC stock can be challenging. AMC is listed on most online brokers, so investors should consider fees, user-friendliness, account minimums, and reputation. Here’s an overview of the best online stock brokers currently listing AMC. Still not sure whether to jump on the current AMC stock frenzy? Let’s take a closer look at AMC’s investment potential. Many Wall Street analysts consider AMC stock a lost cause. This is reflected in AMC’s 12-month price trajectory, where the stock has declined by 87%. However, AMC recently entered a new paradigm; the stock is up over 80% in the past five days. According to Bloomberg, AMC’s recent surge could be the start of a new meme stock season, just like we saw in 2021. After all, AMC wasn’t the only stock to witness unparalleled price growth. Fellow meme stocks, including GameStop, BlackBerry, and Tupperware have also seen rapid gains in recent days. Analysts are pointing to a recent tweet by ‘Roaring Kitty’, the pseudonym used by meme stock trader Keith Gill. Roaring Kitty was at the heart of the 2021 meme stock rally. He inspired the popular Netflix movie Dumb Money. Roaring Kitty’s recent X post was his first since 2021. This seems to have motivated ‘Meme Rally 2.0.’ However, the key takeaway here is that AMC, GameStop, and other meme stocks are speculative investments. While these stocks might have produced substantial gains in recent days, this is likely being fueled by FOMO (fear of missing out) rather than anything fundamental. The challenging part is knowing whether the AMC price surge will replicate 2021’s success – or if it’s already peaked. Looking at the bigger picture, AMC’s financials have struggled for some time. As per Reuters, the movie chain previously reported losses for 14 consecutive quarters. This is reflected in AMC’s stock price performance. As mentioned, the AMC stock price is down 87% over the past year. However, it’s important to note that AMC made a small quarterly profit in June 2023. Net income was up over 107% to $8.6 million – breaking its 14-quarter trend. The following quarter was also positive. September 2023’s earning call reported a 45% increase in revenues. There was also a 105% year-over-year rise in net income, up to $12.3 million. However, normal formalities resumed in December 2023. The earnings call reported a $182 million quarterly loss. AMC’s balance is also concerning. As per its most recent annual financials, AMC’s liabilities stood at $10.86 billion. In contrast, total assets are just $9.01 billion. Free cash flow is also in negative territory. One of the best ways to assess a potential stock investment is to look at sell-side analyst ratings. The outlook isn’t positive for AMC. Based on seven analyst ratings in the prior 90 days, AMC stock is considered a ‘Sell’. What’s more, the average price target is $4.44. That’s almost 19% below current prices. Let’s take a closer look at the AMC stock price history. AMC stock was trading at over $50 five years ago. COVID-19 was a huge catalyst, with AMC’s theaters being forced to close for many months. Moving into 2021, AMC stock was priced at just over $8. This represents an 84% decline from pre-COVID highs. However, AMC’s fortunes turned around when the 2021 meme stock rally came to fruition. After six months of strong upward momentum, AMC stock peaked at over $230 in June 2021. That’s a six-month swing of over 2,775%. Before the recent stock surge, AMC was trading at lows of $2.38. This translates to a 98% decline from its 2021 peak. On May 14, 2024 – AMC stock hit highs of $6.85, meaning growth of 187% in under a week of trading. That said, AMC is now trading at $5.48, a decline of almost 20% from recent heights. Whether or not the market correction is temporary remains to be seen. Just a week ago, AMC stock was trading 98% below its 2021 peak, illustrating ongoing financial distress. However, in the past five days, AMC stock has risen by over 80%. Analysts claim AMC’s recent surge is due to ‘Roaring Kitty’ returning to X. This has also encouraged other meme stocks to rally, including GameStop and BlackBerry. That said, AMC is a loss-making company with a critical balance sheet. Those deciding to buy AMC stock are doing so purely for speculative reasons – proceed with caution.
Your capital is at risk, past performance does not indicate future resultsHow to Buy AMC Stock
Step 1: Create a Brokerage Account, We Recommend eToro
Step 2: Decide How Much You Want to Invest in AMC
Step 3: Make a Deposit
Step 4: Search for AMC and Choose Your Order Type
Step 5: Invest in AMC
Best Stock Brokers for Trading AMC Stock
Is AMC a Buy Right Now?
Recent Price Momentum
Struggling Financials
Why Did AMC Sell Its Own Stock?
Sell-Side Analysts Ratings
AMC Stock Price History
Conclusion
FAQs
Where can I buy AMC stock?
Is AMC still a buy?
References
