Submitted by Mobay_Luv t3_11dlm77 in wallstreetbets
I must confess, I find myself drawn to the parabolic rise of AMC’s stock price today…..here we go again. Like a slow-motion train wreck that hasn’t quite happened yet, the upcoming “vote” and subsequent 10-to-1 reverse split between AMC and its cloned (explain these to me again) APE shares is both a head scratcher and greatest marketing gimmick yet of AMC’s self-described silverback, Adam Aaron. Tomorrow’s Q4 earnings report shouldn’t be a big surprise for AMC — both IMAX and CNK have already reported and shed some light on the 10-12% YoY drop in box office revenues from last quarter. Yet IMAX has better technology and at least CNK is still trading at 2.5 times below its recovery pre-pandemic highs with a 20%+ short float — so one could justify a meme-like over reaction for that little deep value play. But AMC continues to evade rational thought and behavior as it rockets to the moon once again. Spoiler alert — AMC’s Q4 results will be mixed at best with plenty of positive forward guidance due to a strong movie slate over the next several months. And nobody is better at positive spin than Mr. Aaron. But when you’ve already shot up 20-30% in the hours before the earnings report (and close to 70% YTD) — where else is there to go but down? We’ve seen this train wreck many times before — and sadly we know who the winners and losers usually are — but dammit, if I can’t help but keep watching.
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