AMC Entertainment Shareholders Are Making a Huge Mistake
The most surprising stock of 2021 is probably AMC Entertainment Holdings (NYSE: AMC), the world's largest movie theater chain. Any objective observer would view the company as being in very dire straits; after all, AMC is saddled with billions in debt, reeling from the global pandemic, and facing a highly uncertain recovery amid the streaming revolution and compressed theatrical windows. Of course, this being the year of the meme stock and Reddit-fueled speculation, the stock is up a massive 2,350% this year.
Retail investors apparently see the stock as a reopening play and a short squeeze candidate, while also also betting their online community will keep buying and holding the stock.
That's a dubious proposition, however, as it's really, really difficult to see how AMC's intrinsic value is now worth anything close to its current share price.
Source Fool.com
