AMC Entertainment Holdings, Inc. (NYSE:AMC) has had a wild year, with its stock plunging 88.44% over the past year and 18.30% year-to-date.
The stock's volatility was fueled by a mix of company-specific news and broader market events, including the return of Keith Gill, known as "Roaring Kitty," in June. His disclosure of a substantial position in GameStop Corp (NYSE:GME) reignited interest in meme stocks, with AMC quickly finding itself back in the spotlight.
AMC's Financial Struggles, Q2 Silver Lining
The rollercoaster continued as AMC reported its second-quarter financial results. The company posted a loss of 43 cents per share on revenue of $1.03 billion, marking a 23.5% year-over-year decline.
CEO Adam Aron attributed the slow start of the quarter to Hollywood's strikes but highlighted a strong finish driven by the success of Disney's "Inside Out 2."
June 2024 proved to be a high point for AMC, with the company recording its highest-ever June Adjusted EBITDA. Momentum carried into July, thanks to blockbusters like "Despicable Me 4" and "Deadpool & Wolverine." Aron remains optimistic, pointing to extended debt maturities and a promising slate of releases through 2026 as key factors that could stabilize AMC's financial footing.
Also Read: AMC Stock To 'Remain Volatile' After Q2 Results: Analysts Praise Market Share Gains, Caution On Balance Sheet
Technical Indicators Hint At A Golden Cross
Chart created using Benzinga Pro
On the technical front, AMC's stock might be on the verge of a Golden Cross — a bullish signal that occurs when a short-term moving average crosses above a long-term one.
Currently, the stock is under moderate selling pressure, with its price of $5 sitting below key moving averages like the 8-day SMA at $5.02 and the 200-day SMA at $5.18.
Chart created using Benzinga Pro
Despite the bearish signals, the RSI is nearing oversold territory at 48.91, suggesting limited downside. The MACD indicator at -0.01 hints at a possible shift in momentum, while the Bollinger Bands (25) show AMC trading near its lower band, which could present a buying opportunity if the stock stabilizes.
Roaring Kitty's June revival added fuel to the AMC fire. As the stock flirts with a potential Golden Cross, investors might find this a critical juncture—either as the setup for a blockbuster rebound or another twist in AMC's ongoing drama.
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