AMC Entertainment (NYSE:AMC) is the largest movie theatre chain in the United States. This stock gained considerable attention during the GameStop short squeeze that saw traders draw in AMC and Blackberry as other potential short squeeze targets. Unfortunately, the stock has suffered a steady decline since that hype fueled period in 2021.
In fiscal 2022, this company reported total revenues of $3.91 billion – up from $2.52 billion in the previous year. AMC saw a surge in theatre attendance as cinemas benefited from a return to normal following the worst of the COVID-19 pandemic. However, it still posted an adjusted net loss of $727 million. Meanwhile, AMC delivered adjusted EBITDA of $46.6 million compared to an adjusted EBITDA loss of $291 million in fiscal 2021.
This company stole headlines this week after it was reported that the retail giant Amazon was mulling over a potential purchase. Amazon has already established a strong footprint in the ongoing streaming wars. It recently released The Rings of Power, which was the highest budget television production in history. The acquisition of AMC would give Amazon access to its stable of 600 cinemas across North America, Europe, and the Middle East. This could give Amazon a huge brick-and-mortar footprint to promote its entertainment content.
Shares of AMC have been extremely volatile in recent months. However, investors should be intrigued by this potential acquisition.
Conventional wisdom says to buy the rumour. Investors who want to take the gamble might want to snatch up AMC today.
Tech Insider
