2 Reasons to Sell AMC Stock
What goes up must come down -- at least when the rally comes from speculation instead of fundamentals. And while AMC Entertainment's (NYSE: AMC) shares are still up by over 1,600% year to date, the movie theater operator looks poised for a massive crash because of its deteriorating balance sheet and seismic shifts in the film industry.
According to the Wall Street Journal, AMC's multi-bagger rally was driven by retail speculation and an intentional short squeeze. Fundamentals play a smaller role, but some investors may also be optimistic about the company's ability to bounce back from the coronavirus pandemic now that 56% of Americans above age 12 are vaccinated. AMC has reopened almost all its U.S. locations.
But unfortunately, the new normal isn't looking so normal for AMC.
Source Fool.com
