AMC is currently on a rescue course: Many large investors who previously placed short positions with short sales (and thus on the falling value of the share) are now being overrun by young investors from the social networks. So they buy the shares now and drive the price of the AMC share up. As a result, while the price was $ 4.01 on January 4, 2021, the stock is now worth $ 19.90. So the question arises: buy AMC shares or not?
You should pay attention to the following points when buying AMC shares:
Is now the right time to start? How will AMC develop? What are the forecasts?
We deal with the basic data on the AMC share: price, valuation, outlook, analysis, forecasts, recommendations, history and tips on how and where it is easy to trade shares online.
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To be able to buy the AMC share, you first have to register with a broker. It is advisable to pay particular attention to the deposit protection; if the broker goes bankrupt, the shares still belong to you. Anyone who waives this deposit protection will be left without shares in the event of the broker’s bankruptcy.
If stock selection and evaluation are too complicated, a social trading platform can also be a good solution. Here you follow an experienced trader and automatically copy the trader’s trading decisions.
Our broker recommendation at this point is ETFinance – with state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares, ETFinance is our test winner broker. To register with ETFinance, click here.
Once you’ve decided on a broker, the next step is to register and log in.
At ETFinance, you have several registration options. In addition to the choice of creating a user account yourself, there is also the option of registering via a Facebook or Google account, which once again simplifies the process considerably.
To open an account, all you need in the first step is a username, email address and a strong password. With this, you first open a demo account with ETFinance, whereby you can trade unlimited with virtual credit.
However, if you want to buy AMC shares, you can switch to live mode or make a deposit.
After registration, a payment is made to the customer account. In advance, you should, therefore, first, think about how much money you are willing to invest in the AMC share. We generally recommend that you never invest more than 5% of your capital in a single share.
Once you have decided on the amount you want to invest, click the “Add Money” button.
You can now choose from various deposit methods, including PayPal, credit card or bank transfer. It should be noted that a bank transfer usually takes 2-3 working days for the credit to arrive on the customer account.
However, if you want to have your money in your account faster, there are other payment methods available
Below is an overview of all the payment methods available at ETFinance:
Payment option | Possiblestabilise? |
Buy AMC shares with a credit card | ✔️ |
Buy AMC shares with PayPal | ✔️ |
Buy AMC shares with Skrill | ✔️ |
Buy AMC shares with bank transfer | ✔️ |
Buy AMC shares with Neteller | ✔️ |
Buy AMC shares with UnionPay | ✔️ |
After the deposit, the money appears in your account under the menu item “Account”.
First, find the AMC share using the search bar above and click the “Trade” button.
A small window will open to set the price and the number of shares you want to buy. You can also set stop-loss and take-profit, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.
The Leverage field allows you to control whether you want to buy the actual share (x1 leverage) or a CFD (x2 or more leverage).
The purchase is completed with a click on “Place order,” and the share appears in your portfolio.
AMC (AMC Entertainment Inc.) is a global operator of cinemas. The company was founded in 1920 and is headquartered in Kansas, USA. AMC is short for American Multi-Cinema. The company has been 38% part of the Chinese Wanda Group since May 2012. In Germany, AMC is represented by the subsidiaries United Cinemas International.
AMC currently employs around 20,000 people worldwide. There are also other cinemas in Great Britain, Hong Kong, Mexico, France and Germany.
In 1995, AMC Entertainment opened the first megaplex in Dallas. By September 2015, AMC Entertainment owned 348 cinemas with 4937 screens in the United States. At that time, there were around 200 million visitors a year.
In May 2012, it was announced that the Chinese group Wanda Group would buy AMC for USD 2.6 billion. As a result, China could secure access to more than 5,000 cinema screens (out of around 40,000).
In 2016, the Carmike cinemas were bought for USD 1.1 billion. This resulted in 20% of American cinemas belonging to the Wanda Group. In addition, AMC bought the English cinema chain Odeon & UCI for £ 921 million. As a result, the company owns 242 cinemas with 2236 screens in England, Ireland, Germany, Austria, Spain (Cinesa) and Portugal. The transaction was completed in November 2016. With 627 cinemas and more than 7600 screens, the Wanda Group has risen to become the largest cinema operator in the world.
AMC has struggled significantly in recent years, not least because of the large stake held by the Chinese Wanda Group. As a result, the share fell substantially in recent years and also remained in the lower segment. Thus, the share became a bargain for hedge funds and prominent investors who wanted to lower the percentage further by selling short.
The share experienced a major upswing in January. Users from social networks such as Twitter and Reddit decided to take action against the major shareholders and investors. So they joined forces, and it came to a record high on January 27, 2021. While the share was trading at USD 4.01 on January 4, 2021, the current price was briefly USD 19.90. The upward trend then subsided again, and the share sank to around USD 6 at the end of February.
Since February 19, there has been a clear upward trend again, which does not seem to be easing up to now. Currently (March 12, 2021), the stock is back at around USD 10, and it looks as if the Reddit community could win against the short-sellers in the long term.
This can be seen similarly with GameStop. Users have also joined forces here and declared war on major investors. They received a tailwind from Tesla CEO Elon Musk, who partly cheered the young investors on Twitter. And just like with Game stock, this has meant that the stock has been brought back into the public eye.
If new investors find out about it now and join in, and the cinemas are doing well again thanks to vaccinations and tests, the share could return to pre-corona prices and rise to over USD 15 in the long term.
A current target price is challenging to forecast, as the massive interest in the papers continues as before. On January 26 January 26, 2021, the share value of AMC tripled for a short time and is currently unstoppable. Similar to GameStop, there is also a fight against large US hedge funds taking place here.
The analysts’ ratings are currently (March 12, 2021) on average, still at 3.22 USD. Like Gamestop, this is more a matter of faith, and so many fundamental analyses are currently of little relevance for the future price of the share.
The AMC share also pays a dividend. Here is an overview of the dividend yield over the last 5 years :
Surname | Return in% | dividend | year |
AMC Entertainment Holdings Inc | 0.13 | $ 0.03 | 2020 |
AMC Entertainment Holdings Inc | 11.21 | 0.80 USD | 2019 |
AMC Entertainment Holdings Inc | 14.32 | 1.71 USD | 2018 |
AMC Entertainment Holdings Inc | 5.43 | 0.80 USD | 2017 |
AMC Entertainment Holdings Inc | 2.35 | 0.80 USD | 2016 |
Similar to GameStop, the share is currently at new record prices. While GameStop has been involved since December, AMC only recently joined. If you want to buy the stock, now would be the right time to do so. The community will not hold onto a share forever, and interest from Reddit is still unbroken.
After the stock was considered a loser for a long time, it is now being revived by the upswing thanks to Reddit users. Thus, one would like to force major investors to their knees to sell their empty positions. But, on the other hand, an investment might be worthwhile now.
Of course, you also have to consider that this is currently a highly risky investment. If the share continues to rise and hold, you can get a high return on it – but if the bubble bursts, there is a risk of total loss.
For the time being, the volatility of the share is likely to continue, as experts estimate. However, there is a hope that the company will succeed in reversing the trend and that the share will also rise sustainably.
The big question, of course, is whether AMC stocks are worth investing in. The cinema business has generally suffered from competitors from the streaming sector in recent years. In addition, most cinemas have been closed since the Corona crisis. However, once the crisis is over, there could be a boom in cinemas.
Accordingly, it can be worthwhile to get into the AMC share now – but one must not ignore the risk that the bubble could burst – similar to the tech bubble in 2000.
We compare the fees of the largest brokers with the following example:
With these assumptions, we now compare the fees of Comdirect Stabilise, ETFinance & Libertex :
Providers | Comdirect | ETFinance | Libertex |
Deposit | for free | free | for free |
Purchase fees | 3.90 € | free | 0.22% |
Holding fees | for free | free | for free |
Sales charges | 3.90 € | spreads | 0.22% |
Total fees | € 7.80 | Reasonable | € 4.40 |
Since January 4, the share has tripled – Reddit and Twitter users are trying to fight US hedge funds simultaneously. GameStop and Nokia, among others, are also targeted by young investors. Later, the stock increased again, only to now undergo another kind of rally (March 12, 2021). However, it is still unclear what the forecasts for this year will look like. It could come to a new record high, and the stock could even stabilize over the long term due to the new interest.
Due to short-sellers, the stock was brought to its knees. In addition, there was speculation on falling market values, which led to users from the Internet resisting it. So the focus is currently on rising prices.
However, the risk should not be underestimated. You can’t predict whether the Reddit users’ plan will work out in the long term. The plan is to force short sellers and large investors to close their short positions by selling the stock.
There are currently no clear forecasts. However, should this gigantic bubble burst, there is a risk of a total loss for many young investors.
If you want to join AMC now, you should do so with manageable capital. Our recommendation is not to invest too much capital in the AMC share. The price jumps are huge, but should the bubble burst, there is a risk of losing the capital invested.
Should the price stabilise, however, and the share, the future looks very good for AMC. In the future, you could then concentrate on newer business models and possibly expand the business.
So if you want to join AMC, you should do so now! For this, we recommend our test winner, ETFinance, where you can easily purchase the share.
The share has triple since the beginning of January 2021. The current trend doesn’t seem to be stopping. An investment could be worthwhile here.
AMC is listed and tradable on the NYSE.
In the article some ways are presented how you can quickly get into possession of your own AMC share. If you do not want to purchase the share directly, you also have the option of using CFDs to bet on rising or falling prices.
Investing is speculative. Your capital is at risk when investing. This website is not intended for use in any jurisdiction where the trading or investments described are prohibited and should only be used by persons and in a manner permitted by law. Your investment may not be eligible for investor protection in your country or state of residence. Therefore, conduct your own due diligence. This website is available to you free of charge, however we may receive commissions from the companies we offer on this website
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