It’s easy to find reasons to bet against global movie-theater chain AMC Entertainment (NYSE:AMC). For example, AMC stock is on a long-term downtrend. Also, AMC Entertainment has a sizable long-term debt load and isn’t generally liked by analysts. Yet, the bull case is stronger than you might expect, and a share-price rally could actually be imminent.
Keep in mind, the stock market is quite efficient. The aforementioned bearish factors against AMC Entertainment have undoubtedly been priced into the stock. Meanwhile, there’s a virtual army of AMC Entertainment fans that could band together to boost the share price at any given moment.
That army is growing, and you won’t want to be on the wrong side of the trade if they start a massive short squeeze. Ultimately, whether you’re into meme stocks or not, you might want to start a small share position in AMC Entertainment right now.
AMC Stock Struggles Despite Company’s Progress
AMC stock has gone nowhere fast since the beginning of the year. That’s surprising, considering AMC Entertainment’s improvement in key areas. For one thing, the company recorded its busiest weekend of 2023 and its third-busiest weekend since 2019 during this year’s Easter weekend.
That fact indicates that foot traffic may be picking up at AMC Entertainment’s movie theaters. In addition, the company’s revenue grew 21.5% year over year during this year’s first quarter. Turning to the bottom line, AMC Entertainment’s net earnings loss narrowed $101.9 million in Q1 2023 to $235.5 million.
Furthermore, AMC Entertainment is expanding its branded popcorn to 2,600 Walmart (NYSE:WMT) stores. Also, the company recently announced a new promotion that includes ticket prices as low as $3. These efforts could help to generate revenue for AMC Entertainment and, hopefully, reduce the company’s debt load.
AMC Entertainment’s Shareholder Army Is Growing Fast
I’ve covered a lot of companies and stocks, but I’ve never seen anything quite like this. AMC Entertainment’s shareholders are fiercely loyal, and they have a support system that’s unmatched on Wall Street.
The leader of the virtual army of “apes” is, of course, AMC Entertainment CEO Adam Aron. He recently announced on Twitter that AMC Investor Connection is the company’s “free program of communications and offers for AMC shareholders.” Aron also revealed that 1 million members have already enrolled in this shareholder program.
I must admit, no corporate CEO rallies the troops like Aron does. Moreover, the AMC Investor Connection website isn’t the same thing as the company’s regular investor relations site. It’s much more exciting than that, as AMC Investor Connection provides instructions on how to get special offers and perks at AMC movie theaters.
To really get a feel for the size and loyalty of the AMC Entertainment army, check out Aron’s Twitter postings and the replies to them. It doesn’t matter whether analysts like this company or not. There are plenty of financial traders who are passionate about AMC Entertainment, and collectively, they could send the AMC stock price much higher.
Try a Small, But Confident, Position in AMC Stock Today
Aron is a controversial figure — no doubt about that. Consequently, AMC Entertainment is a love-it-or-leave-it kind of company. However, it seems that there are at least 1 million people who stand behind AMC Entertainment.
Besides, some fiscal facts suggest that AMC Entertainment is improving. So, consider your tolerance for risk. If you can handle a high degree of volatility, feel free to try out a tiny but proud share position in AMC stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.