AMC Entertainment Holdings Inc (NYSE: AMC) shares are declining despite positive news surrounding a new Taylor Swift special screening. Here’s what you need to know.
What’s Driving AMC: AMC continues to battle strong headwinds including substantial debt and lease obligations that puts the company in a financial strain. Bears point to the company’s overvaluation relative to peers, depressed margins and its sensitivity to economic downturns that could bring down consumer spending on movie attendance. Competition from streaming services and alternative film delivery methods create threats to ticket pricing and attendance.
The decline in shares on Thursday comes even as AMC announced the global rollout of “Taylor Swift | The Official Release Party Of A Showgirl,” reaching 110+ countries starting Oct. 3. The rollout marks the second collaboration between Swift and AMC after their previous concert film grossed over $261 million globally, becoming the highest-grossing concert film of all time.
Even with the Swift partnership, analysts are cautious. The consensus price target sits at $5.21 based on 10 analysts, with targets ranging from $2.70 to $10, but most analysts have Neutral or Sell ratings on the stock.
Bulls counter that AMC’s margins are forecast to nearly double from 7% in 2024 to 13% by 2026, supported by solid EBITDA growth expectations of 41% in 2025 and 52% in 2026.
"The combination of a resurgent box office, our unparalleled theatre footprint with premium experiences galore, our compelling marketing programs and our increasing financial strength have a flywheel impact when they all are happening simultaneously," CEO Adam Aron said last month.
AMC Price Action: AMC shares were declining by 2.74%, trading at $2.84 at the time of publication on Thursday, as stated by Benzinga Pro.
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