Recent Moves Fail to Reignite AMC Stock as It Trades in a Range

AMC stock - Recent Moves Fail to Reignite AMC Stock as It Trades in a Range

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AMC (NYSE:AMC) stock has had a rough month. Shares of the Reddit darling are down 18.38% in the last month, despite some interesting recent moves from the biggest cinema chain in the world.

AMC is upgrading to the latest laser projectors in what it said is its first major cinema upgrade for many years. Recently it announced its partnership with Barco to install new laser projectors. This will be installed in more than 3,500 American theaters throughout 2026, with AMC branding these auditoriums as “Laser at AMC.”

According to the companies, the equipment investment is valued at about $250 million, and was “made possible by” Cinionic’s “Cinema-as-a-Service” program. AMC and Cinionic will be installing their machines later this year, and the process will be complete by the end of 2026.

In addition, if you own Dogecoin (DOGE-USD), Shiba Inu (SHIB-USD), or other cryptocurrencies and want to purchase a movie ticket, then AMC now allows you to do so with its mobile app. It is no secret that AMC favors cryptos and supports the space. That’s why the recent news of AMC’s announcement fits its recent moves.

However, despite these recent moves, AMC has not been able to shake the negative momentum. As frequent traders know, timing is everything when it comes to AMC stock. Momentum matters a lot because AMC rarely trades on fundamentals. Therefore, the stock is on a losing streak should keep you at arm’s length with this one.

Chart showing price moves of AMC stock
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Source: Charts by TradingView

AMC Stock Fails to Break Its Losing Streak

At the end of March, AMC stock skyrocketed. Two weeks after the company invested in Hycroft Mining (NASDAQ:HYMC), a Nevada gold and silver miner, a sharp rise took place. However, the investment itself is perplexing. I covered it in detail when the deal first emerged. Even though some time has passed since that time, my opinion on the matter hasn’t changed much.

Meanwhile, April has not been kind to AMC stock. Furthermore, the stock has begun trading in a predictive pattern after starting this month with a steep drop — at least it has broken the descending triangle pattern. Short interest, though, remains elevated at 19.68%. It is a key metric for judging AMC stock since this is a meme trade.

The two recent announcements have been mild disappointments, and it is hard to tell when the next rally will be. Momentum-wise as well, AMC stock does not offer much right now.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/recent-moves-fail-to-reignite-amc-stock-as-it-trades-in-a-range/.

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