AMC Is Betting on Gold, and Shareholders Should Be Furious
When the coronavirus pandemic hit in 2020, one of the worst impacted industries was movie theaters. Shares of AMC Entertainment (NYSE: AMC) plunged, and there was a very real concern that the company would have to declare bankruptcy. And then something unexpected happened: the meme stock craze. And now something perhaps even more astonishing is going on with AMC, but it's a potential problem.
It is hard to disparage AMC Entertainment when it comes to running movie theaters. The company's collection of movie halls tallies to 950 with a screen count of over 10,500. You don't get that big by accident. To be fair, owning movie theaters has been a rough and competitive business for many years, considering the increasing use of at-home digital entertainment services. AMC has basically taken the scale approach, and until it was shut down by the government as a nonessential business, it was handling itself as competently as any peer.
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Source Fool.com
