AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading higher Thursday afternoon following a recent surge in box office attendance, particularly after the release of Avatar: Fire and Ash.
The stock’s rise comes as broader markets are experiencing gains, with the S&P 500 up 0.70% and the Nasdaq-100 up 1.17%, indicating positive sentiment in the overall market as investors react to the latest box office successes. Here’s what investors need to know.
Why AMC’s Recovery Sparks Both Hope And Caution
AMC’s stock has recently shown volatility, hitting an all-time low before bouncing back, especially after a strong pre-Christmas weekend where it attracted over 4 million guests and generated $88 million domestically.
Despite this positive momentum, investors likely remain cautious due to concerns over long-term balance sheet issues, particularly fears of dilution from a new note agreement allowing for up to $150 million in stock offerings starting in February 2026.
The company has seen significant investment interest, with billionaire Robert Citrone of Discovery Capital Management acquiring approximately 32.75 million shares, betting on the stock’s undervaluation relative to its box office recovery.
AMC's Volatile Past
Once a traditional movie-theater chain with modest trading volumes, AMC became a market phenomenon during the 2021 meme stock surge, when retail investors drove its share price to unprecedented highs and forced a massive short squeeze.
Since then, the stock has undergone multiple dilutions, reverse splits and sharp price swings as the company fought to repair its balance sheet after the pandemic-era collapse in theater attendance.
For long-term investors, this history is a reminder that AMC trades as both a business and a sentiment-driven trade. The firm still controls a large theater footprint and benefits when blockbuster lineups and premium formats draw crowds.
Is A Short-Term Recovery On The Horizon?
The stock is currently trading 1.5% below its 20-day simple moving average (SMA) and 33.4% below its 100-day SMA, indicating a bearish trend in the short to medium term. Shares have decreased by 53.70% over the past 12 months and are currently positioned closer to their 52-week lows than highs, reflecting ongoing challenges for the company.
The RSI is at 36.22, which is considered neutral territory, while the MACD is above its signal line, indicating a bullish signal. The combination of neutral RSI and bullish MACD suggests mixed momentum, which traders should monitor closely for potential shifts.
- Key Resistance: $2.00
- Key Support: $1.50
AMC Shares Gain Thursday
AMC Price Action: AMC Entertainment Hldgs shares were up 4.83% at $1.63 at the time of publication on Thursday, according to Benzinga Pro data.
Image: Shutterstock
