Equity market broadly soften as Russia continued its attack on Ukraine despite yesterday calming sentiment. As the military operation continues, crude oil prices jumped and help support inflation on the horizon, leading to fear and a risk-off mode. Generally, market participants are worried with the state of the economy.
💎The more than Meme stock: AMC Entertainment💎
Recent days saw large swings in meme stocks such as GME and AMC. In particular, AMC was one of Pika World’s highlights in 2021. It has been trending on most social media.
The CEO had also caused hype in its share price when it announced a $27.9 million investment in HYMC, a mining company looking to develop a sound and silver mine early in the month.
The move stunned many shareholders, especially bondholders, who are increasingly uncomfortable with the idea that the company is spending its $1.8 billion of cash making acquisitions rather than paring down its enormous debt.
💊Rethinking about the Future💈
The CEO has been straightforward in this episode. He seems to have been thinking out loud about the company’s future beyond bringing back the old beauty and glory of the theatre business.
Indeed, bold actions were implemented. It has started accepting cryptocurrencies, experimenting with NFT and exploring a retail popcorn business. It has also acquired theatres that are likely to generate profits. And with such moves sent a strong signal more is to come for investment.
💡What’s the sentiment?🗝
Most analysts have yet to factor in such “uncertain” investment in their projection. Most predictions still project losses such as $412 million for 2022 and $224 in 2023. Without the pandemic, investors have also been already worried about AMC’s Future due to the threat of streaming services.
In a nutshell, what the future holds depends on what’s unfolding.
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