In a recent episode of CNBC's "Mad Money," host Jim Cramer discouraged viewers from investing in AMC Entertainment Holdings Inc. (NYSE:AMC) stock, citing the company's recent performance. Instead, he recommended two other stocks.
What Happened: Cramer, in his "Lightning Round" segment, expressed his reservations about AMC's stock on Monday, as reported by CNBC on Monday. He suggested that the company's stock isn't performing well, attributing this to a decline in moviegoers.
"We don't want AMC. AMC's not doing well. We want stocks that go higher...The consumer's not going to the movies like they used to."
He advised viewers to consider investing in Northrop Grumman Corporation (NYSE:NOC) and John Bean Technologies Corporation (NYSE:JBT) instead. Cramer, who had previously been hesitant about Northrop Grumman, said he was now ready to "pull the trigger" at the current price of $438.
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He also expressed his fondness for John Bean Technologies, a company in the global industrial food sector, calling it "a little quirky, but good."
Why It Matters: AMC has been a subject of intense market speculation and short interest. AMC's short percent of float increased by 3.51% in a recent report. The company has 24.10 million shares sold short, which is 9.74% of all regular shares available for trading. This indicates a bearish market sentiment towards the stock.
Despite a 45.2% year-over-year increase in third-quarter revenue, AMC's recovery post-pandemic has been a subject of debate. In November, Benchmark analyst Mike Hickey reiterated a Hold rating on the stock, suggesting a wait-and-see approach to its innovative recovery path.
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