Should I buy AMC stock today? AMC price prediction | Invezz


A few months ago, the share price of AMC Entertainment Holdings (NYSE: AMC) experienced a meteoric rise due to its involvement in a short squeeze initiative driven by WallStreetBets. After several weeks of stagnancy, many investors thought the drama was over. They were wrong.

In the last 24 hours, AMC reached its highest valuation in the best part of 4 years: $32. Now, thanks to this price surge driven by the AMC ‘apes’, investors are searching for the best places to buy AMC stock online. To help you find the best platform to trade AMC shares with low fees, an easy-to-use interface and a reliable service, we have listed three of the best brokers that offer AMC Entertainment shares below.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Affiliate Marketing

In addition, we have explained our AMC price prediction based on some of the investment community’s most prominent voices. So, if you want to know where to buy AMC stock in the UK or elsewhere, or if you are looking for an AMC stock price target, this is the page for you.

Where to buy AMC stock fast

To invest in AMC shares, we recommend a low-fee broker with a track record of reliability. Brokers are online services that enable investors to control their entire portfolio from a website or even their mobile device, and you can quickly open and close positions based on market fluctuations.

We have made it easy to find the best broker to buy AMC Entertainment shares by listing two of the top options below and explaining what they have to offer.

1) eToro

Etoro is one of the world’s most popular online brokers. With a clean, easy-to-use interface, innovative features like CopyTrader™ – which allows you to copy the trades of top-performing investors – and low fees, eToro is a good place to buy shares in AMC.

Register here >

2) Plus500

For investors looking for something a little different, Plus500 is the platform for you. It enables users to invest in AMC stock with CFDs. This means you can gain exposure to the value of AMC shares without having to own them outright, and this is a flexible, inexpensive way to invest. Plus500 is reliable, popular and has a great support team should you ever need advice or assistance.

Register here >

If neither of these options tick all of your boxes, you can find our list of the best stock trading platforms here. In addition, if you need to absorb some foundational information about the process of purchasing shares before you get started, check out our introductory guide. Lastly, if you want some clear guidance on how to buy AMC stock online, click here.

What is AMC Entertainment Holdings?

Based in Leawood, Kansas, AMC stands for American Multi-Cinema. The company is listed on the New York Stock Exchange and is one of the world’s largest movie theatre chains with 358 theatres across Europe and 620 in the United States.

Is AMC a good stock to buy?

Whether or not AMC Entertainment is a good stock depends on your definition of ‘good.’ If you are looking for a high-risk investment opportunity with the potential for significant rewards, AMC could be the ideal destination for your capital. The company’s meteoric rise has shown no signs of settling down, and speculation is mounting that this may just be the beginning.

By contrast, if stability is important to you, and you want to avoid the volatility a short squeeze can cause, it may be worth looking for a different stock.

Is AMC the next Gamestop?

It is difficult to tell at this stage. Gamestop’s climb from $10 to the dizzy heights of $350 remains one of the most remarkable stories of 2021 so far. Quite whether AMC Entertainment can replicate this level of success remains to be seen, and we will likely know more in the coming days.

However, there are plenty of reasons to feel encouraged. In terms of fundamental value, whereas Gamestop has been trading well below $30 for most of the last decade, AMC had a share price of over $35 less than five years ago. So, in terms of fundamental value, AMC has less of a mountain to climb in this regard.

The company’s models are also different. While Gamestop is attempting to resurrect itself in the face of stern online competition from giant rivals like Amazon, AMC Entertainment already has a monopoly on the American cinema industry and a major presence in Europe. As COVID-19 lockdowns ease and movie theatres begin to fill back up, the sector could be in for a boom, resulting in significant gains for AMC shareholders.

AMC price prediction

Any reputable analyst is unlikely to be able to predict any price movement accurately since this is driven by a short squeeze phenomenon rather than fundamental value or news. In fact, the highest we have seen an analyst give as an AMC price target is $18, and since the company has already far exceeded this mark, what comes next is wholly unpredictable.

Will AMC reach $100?

A surge this substantial would be the most dramatic story since the Gamestop saga. Our team of analysts feel that $100 is a lofty target, whereas AMC reaching $50 is more feasible. However, as previously mentioned, with such unpredictable market dynamics, we wouldn’t rule anything out. If there is one thing we have learned this year it’s that in this market, anything feels possible.

Should I buy shares in AMC?

This depends entirely on your financial circumstances and investment goals. First and foremost, since this is a risky investment venture, are you investing money that you can afford to lose? If your answer is no, you should steer clear of AMC or any other stock for that matter.

If you are looking for an investment opportunity that could yield massive gains or substantial losses, AMC Entertainment could be the company for you. By contrast, if you are looking for sustainable value, look elsewhere.

For long-term investors, this inflated valuation seems unsustainable, though having said that, Gamestop has secured its status as a stock consistently trading at over $100, so there is the possibility that AMC could sustain this value. For short-term traders, make sure to conduct technical analysis and keep your cool; this is likely to be a dramatic few days, so be sure to remain calm and make rational decisions.

Will AMC make me rich?

You may have missed the boat as regards returning a multiple on your investment. However, AMC still has the potential to deliver significant returns as has already been exhibited. The ceiling appears much higher than where we are right now, so if you think you can hold your nerve, now could be a good time to get involved.

Social media reacts

Below, we have collated a selection of some of the most interesting social media reaction to the AMC situation.

Feel free to select a broker and start trading AMC stock if you now feel ready. This story has plenty more twists and turns to come; stay up-to-date with the latest news via Invezz.





Source link