How Much Will the Meme Stock Surge Help AMC Theatres in the Long Run?

·1-min read

Buoyed by millions of meme traders, AMC has transformed from a company on the brink of pandemic-induced bankruptcy to amassing the highest cash flow in its history amidst a meteoric stock surge. But is the world’s largest theater chain now in a better position for the COVID-19 recovery period than its competitors?While analysts who spoke to TheWrap commended AMC’s CEO Adam Aron for navigating through the pandemic and using an unexpected internet craze to his company’s advantage, they note that challenges lie ahead, some that are tied to AMC’s still substantial debt load and others facing the movie theater industry as a whole. “They have over $1 billion of cash and still have quite a bit of debt, but they are doing the right thing, selling equity at elevated levels and using the proceeds either to grow or to pay down debt,” said Wedbush financial analyst Michael Pachter. “I think the CEO deserves congratulations for being willing to sell stock up here, since he is charged with keeping the company in good shape. He has navigated the COVID seas and avoided the icebergs, and deserves accolades for doing so.” Just a day after AMC announced a new equity deal in...

Read original story How Much Will the Meme Stock Surge Help AMC Theatres in the Long Run? At TheWrap