An expert comment on AMC Entertainment Holdings Inc (NYSE:AMC) and the future of movie theaters as AMC stock took a 40% haircut Monday, over word its largest competitor – Cineworld Group (LON:CINE) – planned to file bankruptcy.
The Impact Of AMC’s Stock Dive On Movie Theaters
Scott Sheridan, market expert and CEO of tastyworks, comments:
“I think when the pandemic hit, a lot of industries adapted, and the movie industry was one. Delivering movies directly to consumers either via streaming or online stores for purchase/rent helped keep the industry chugging along.
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I think theater chains need to rethink the experience if they want to bring people back to pre-pandemic levels. With the cost of larger screen TVs falling and the expense of going to a movie being so high, there’s not as much of a compelling reason to go to theaters. While I don’t think the industry is dead, I do think they’re facing a significant challenge.
We’ve only seen a few big-name theater exclusive releases since Covid hit, and for the most part, I think they did okay. I’m sure there is still a population of would-be moviegoers that remain hesitant about being in large groups. But let’s see what happens as we get closer to the holidays and big-name releases hit.
As for AMC stock, it’s been volatile of late, but that might be attractive, especially if you’re an options trader. Right now, the implied volatility in AMC is over 180%, and the market is pricing in an expected move of around $8 over the next 60 days."
About tastyworks
tastyworks is an online brokerage platform built specifically for options traders. The up-and-coming online broker is a subsidiary of tastytrade, one of the fastest growing online financial networks in the world.
