AMC stock price has remained in a tight range this year as investors focus on its recent financial earnings and the Box Office outlook for the year. It was trading at $3 on Thursday, a few points above the year-to-date low of $2.80. This article explains why the AMC share price may surge by about 25% this year.
AMC business is still doing well
Financial results released in February showed that AMC’s business did relatively well in the fourth quarter and in 2024.
The results revealed that AMC grew its revenue and narrowed its losses, which is a welcome move for a company that has been pressured for long.
AMC’s revenue was $1.3 billion in the fourth quarter, a big increase from the $1.1 billion that it made in the same period a year earlier.
The company’s net loss was about $135 million, a big improvement from the $182 million it lost a year earlier. Most importantly, the adjusted EBITDA was $164.8 million, much higher than the $47.9 million it made a year earlier.
Free cash flow is one of the most important numbers that Wall Street investors look at since it considers all the funds that remain after spending. AMC’s free cash flow rose to over $113 million, up from an outflow of $149 million.
These numbers mean that the company is doing relatively well. They also mean that it may become net profitable either this year or in 2026.
AMC’s annual revenues came in at $4.63 billion, down from the $4.8 billion it made a year earlier. While a revenue decline is never a good thing, this one was relatively understandable for two reasons. AMC had tough comps because of the success of Barbie, Oppenheimer, and Eras Tour. Also, the large Hollywood strike in 2023 impacted its business last year.
Box Office growth in 2025
There are chances that AMC will return to growth this year because of the planned movies. Some of the most notable movies that will come out this year are Captain America: Brave New World, Snow White, Thunderbolts, Mission Impossible, Jurassic World, The Fantastic Four, Superman, Avatar, and Zootopia. These highly popular movies will lead to higher revenues over time.
Analysts are optimistic that, barring any major development. Analysts expect that the annual revenue will be $5 billion this year and $5.38 billion in 2026. These are good numbers for a company that some investors believed would go bankrupt.
Most notably, the company has handled its balance sheet. It has deferred most of its risky maturities to 2029 and boosted its cash reserves. This means that it may not need to raise cash again in the near term since its losses are narrowing.
This is partly the reason why analysts expect that the AMC stock price will jump in the near term. The average stock target is $3.5 from the current $3.
AMC stock price analysis
The daily chart shows that the AMC share price has been in a strong downward trend in the past few months. It has formed a descending channel and remained below the 50-day and 25-day moving averages.
This price action and the low daily volume could be a sign that an accumulation is going on. The Wyckoff Theory suggests that the accumulation phase is followed by the markup, one of the market’s most bullish signs.
Such a move would see the AMC stock price jump to the next key resistance at $3.8, the highest point in February last year and 25% above the current level. A drop below the support level at $2.8 will invalidate the bullish view.
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