Originally Posted by Hammock Parties:
NEXT STOP 100
I doubt it. It wasn't close to even 40 before the pandemic and it has issued costly debt since the pandemic.
The other factor is HBO Max is having more movies go straight to homes and in theatres less. This trend may hurt AMC's profitability.
AMC is just having the bounce right now since bankruptcy is off the table for the next year or so.
How well it does going forward is a different story. I predict they will be profitable but just not that profitable since they don't have that great of pricing power in comparison to the movie studios.
If the stock goes much higher than it it is now like to even the mid 20's, fully expect AMC to sell a boat load of shares on the open market driving the stock price down to the teens. It may not even be convertible debt if they can off load shares at a high enough price.
Yes, AMC obviously hurt by pandemic which should end this year but more movies going straight to streaming services hurts AMC.
AMC will survive or at least if they don't some other big movie theatre chain will come to replace them but how profitability it will be long term is a different question. They are just a distributor and that doesn't appear to pay as well as content providers.
When people in today's dollars will be able to buy 83 inch OLED TV's for $1000, it truly may be less people at the theatres. It may take 8-10 years but expect even OLED TV's to drop to those prices for basic ones. [Reply]
Originally Posted by stevegroganfan:
I doubt it. It wasn't close to even 40 before the pandemic and it has issued costly debt since the pandemic.
The other factor is HBO Max is having more movies go straight to homes and in theatres less. This trend may hurt AMC's profitability.
AMC is just having the bounce right now since bankruptcy is off the table for the next year or so.
How well it does going forward is a different story. I predict they will be profitable but just not that profitable since they don't have that great of pricing power in comparison to the movie studios.
If the stock goes much higher than it it is now like to even the mid 20's, fully expect AMC to sell a boat load of shares on the open market driving the stock price down to the teens. It may not even be convertible debt if they can off load shares at a high enough price.
Yes, AMC obviously hurt by pandemic which should end this year but more movies going straight to streaming services hurts AMC.
AMC will survive or at least if they don't some other big movie theatre chain will come to replace them but how profitability it will be long term is a different question. They are just a distributor and that doesn't appear to pay as well as content providers.
When people in today's dollars will be able to buy 83 inch OLED TV's for $1000, it truly may be less people at the theatres. It may take 8-10 years but expect even OLED TV's to drop to those prices for basic ones.
You haven't been paying attention, we're not in it based on fundamentals. I'm not going to rehash the last two weeks of discussion on it bit if you'd like to educate yourself this sums it up pretty well.