Business Report

Massimo DeMichele
(586) 707-4629
mcvdemichele@gmail.com
11/13/2022

AMC STOCK
CONTINUES TO
FALL
November 13, 2022

Overview
AMC entertainment has had a rough year to say the least reporting another quarterly loss in
the third quarter. With shares falling under 80% investors and shareholders are worried about
the company's future and current Business plan.

After miraculously avoiding bankruptcy last year due

to the meme stock craze that helped them along with
other companies like Gamestop, the future for the
entertainment company began to look good. This helped
them make enough money to pay off some of its millions
in debt, however, the debt came back to bite them. In a
recent effort to pay off debt and reinvest in its current
assets, AMC issued a stock dividend to current
shareholders in their forms of shares which they named
“APE”. Even though this was a good idea, the company
couldn’t capitalize fast enough on this and investors
pulled their support. In the wake of this, the stock saw a
drastic drop of almost 50% in 2 months. On top of that,
AMC has struggled to make a profit spending more than
they make, specifically spending 179 million in the third
quarter alone amassing a debt total of almost 5 Billion, 2 billion more than in relation to the
value of the market.
Contributing factors to stock & profit loss
● Lack of Blockbuster Movies: A major worry currently for investors is the lack of big
movies or “blockbuster” for the rest of the year. There are only 4 major movies coming
for them this year while previous years saw almost 20+ “blockbuster” caliber films. The
importance of blockbusters is major revenue in ticket sales and concessions. Without
major movies to come it’s looking like their 4th quarter could repeat the 3rd.

● Lack of Return on Investment: AMC continues to invest loads of money back into its
theaters improving seats, screens, and overall experience. This worries investors as all
they are doing is spending money and not making any while having no clear plan for how
they're gonna make it back.

Possible Solutions
● Provide a “discount night”: By providing a night of the week where movie tickets are 25%
off or even 50% off you can attract more people to the theaters especially during a time
when blockbusters aren't in theaters and attract lots of customers.

● Capitalize on Buying Theatres: With recent small sized theaters going under, AMC
should capitalize on buying them for a short prize. By targeting these small theaters they
can generate revenue especially since they can get them for such a low price.

● Provide Investors with Business Plan: Over the past couple years AMC has struggled
and have continued to dig themselves a deeper and deeper whole in regards to debt.
Providing investors with a clear and concise business plan would put them at ease and
give them a sense of trust in the company's leadership

Conclusion
In conclusion, AMC is desperate for a turn around. With the company falling deeper and
deeper into debt they are in dire need for some change. Without change, the company could risk
going back into risk of bankruptcy.
 Works Cited
● https://www.cnbc.com/2022/10/12/amc-entertainment-stock-falls-to-52-week-low.html

● https://www.cnbc.com/2022/11/08/amc-entertainment-amc-earnings-q3-2022.html

● https://finance.yahoo.com/news/amc-ceo-says-theater-competitors-running-on-fumes-
may-purchase-locations-at-bargain-basement-prices-131434976.html?guccounter=1&gu
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