AMC Share Price – What to Look For Ahead of Q4 2020 Earnings?

AMC Entertainment is a company involved in the movies and entertainment industry, and it operates over a thousand theatres and eleven thousand screens, mostly in the United States but also internationally. The pandemic affected the media and entertainment industry terribly, as lockdowns were the name of the game in 2020. As the world fights the pandemic and sees the light at the end of the tunnel due to vaccination efforts, investors trade some names in advance.

AMC held the headlines this year. Together with GameStop (GME), AMC was the subject of a short-squeeze that made many victims on Wall Street. AMC’s shares traded close to $1 ahead of the squeeze, and they reached as high as $20 in a matter of days. The shares are still up over 300% this year alone, as the short squeeze, apparently, is not over. Therefore, when looking at AMC, consider the overall picture and the fact that the earnings may not mean a lot for the price action, given the business was closed most of last year and revenues fell.

When Does AMC Report Q4 Earnings?

AMC will deliver its Q4 2020 results on the 4th of March, 2021.

Market Expectations from AMC’s Earnings Statement?

The market expects AMC to deliver EPS of -$3.13 for the last quarter, better than the -$5.70 in the previous one. Revenue is estimated to reach $141.31, but the focus on this earnings would be on the forward guidance provided by the management as the economy reopens and the industry will gradually recover.

AMC Shares: Technical Analysis

The technical picture on AMC doesn’t look constructive. Remember that the reason why we see the spike higher and the subsequent bounce has nothing to do with the company’s earnings, but it is merely the result of active speculation on the share’s price, a combination of short-squeeze and gamma-squeeze that often leads to such outcomes.

Should AMC’s share price decline below the rising trendline, bears will try to push it down to the original breakout point.

What Is the Outlook for AMC’s Share Price?

AMC’s share price is extremely volatile. At one point yesterday, the price was up over 10%, and in a matter of minutes, it dived a few percent, only to climb back at the highs. As such, investing in AMC comes with additional risk as the stock is subject to heavy speculation from both the short and the long side. The news that New York will reopen its theaters triggered a 13% move higher recently, confirming the sensitivity of the company’s shares to news related to the pandemic.

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Source: Vantagepoint