synopsis

Earlier this week, AMC announced a record Memorial Day holiday weekend performance in terms of both admissions and food and beverage revenue.

An analyst preferred to remain on the sidelines of AMC Entertainment Holdings, Inc. (AMC) as the risk-reward ratio remained balanced. 

Texas Capital analyst Eric Wold initiated coverage of AMC with a ‘Hold’ rating and a $3 price target, implying over 12% downside from current levels. 

Wold said the movie-theater chain, helmed by CEO Adam Aron, is well-positioned to benefit from improving theatrical attendance and box office revenues in 2025 and 2026.

Earlier this week, AMC announced a record Memorial Day holiday weekend performance in terms of both admissions and food and beverage revenue, driven by the release of big-ticket films such as Tom Cruise’s “Mission: Impossible - Final Reckoning” and Disney’s live-action “Lilo & Stitch”.

Aron commented on the performance: “Finally, it would appear that our industry has turned a corner.”

“A record-setting Memorial Day holiday is yet another sign of the continued strength and relevance of moviegoing in 2025.”

The executive also sounded upbeat about the outlook. “With many more potentially huge movies coming in June all the way through the end of 2025, and beyond that deeply into 2026 as well, we firmly expect to be enjoying a robust theatrical box office as we look ahead,” he said.

Texas Capital’s caution stems from concerns about AMC’s debt levels.

The firm’s analysts see cash flow headwinds due to the company’s elevated debt and major maturities scheduled for the coming years. Higher interest expense is also likely weighing down on the stock’s valuation.

AMC is saddled with a heavy debt pile, with total liabilities standing at $8.8 billion at the end of the March quarter, as opposed to the cash balance of $378.7 million. 

Following the March quarter results, Wedbush analyst Alicia Reese said AMC has $43 million in debt due in 2025, with the maturing payments ballooning to $173 million in 2026 and $526 million in 2027.

Although Aron assured investors there wouldn’t be any further dilution after the 50-million-stock offering announced in January, Reese said, “It will likely seek shareholder approval to issue more shares in 2025 while renegotiating debt maturities and terms to provide liquidity.”

On Stocktwits, retail investors were ‘bullish’ (73/100) on AMC stock by early Friday, with the message volume at ‘extremely high’ levels.

AMC sentiment and messagre volume as of 5:05 a.m. ET, May 30 | source: Stocktwits

Sharing a “inverse head-and-shoulders chart pattern,’ a watcher said they are bullish on the AMC stock.

Another watcher goaded “fellow” apes to act to bail out each other. Apes are a term for retail traders who plunged into AMC stock during the height of the meme mania in 2021.

Some even hoped a post by “Roaring Kitty,” the mastermind behind the 2021 meme run, would save them.

AMC stock rose 0.88% to $3.45 in Friday's early premarket session. Although AMC is considered one of the “meme stocks,” it has lost 14% for the year-to-date period.

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Editor’s Note: A previous version of this article incorrectly stated that AMC’s total debt was $700 billion. The correct figure, as reported in the company’s most recent regulatory filing, is over $8.8 billion in total liabilities as of March 31, 2025. The article has been updated to reflect this correction.<