How To Buy AMC Stock – Will the Theater Co. Make a Comeback?
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The global pandemic changed the way we experience movies. Instead of debuts of anticipated surefire blockbusters like "Wonder Women: 1984" taking place at theaters, streaming networks scored big, debuting movies for one price or a membership to services like Disney+ (which debuted the live-action "Mulan") and HBO Max (which debuted Zach Snyder's 4-hour "Justice League").
With changes in consumer preferences, the question is whether streaming has officially killed off movie theaters or if the theaters will rebound. Those betting on the theaters are especially interested in AMC, which, like the seemingly dead-in-the-water GameStop, received a boost from WallStreetBets on Reddit.
As of May 14, 2024, the stock was trading at $9.78. The man who once started the mania on Reddit, known as "Roaring Kitty," posted for the first time in the last three years, which has led to meme stocks like AMC climbing again.
Thinking about getting in on this risky business? Here's how.
In this article
Step 1: Finding a broker that offers AMC stock
You can purchase AMC stock shares through several online brokerage accounts. Here’s a look at three brokers who offer AMC stock purchases and how they compare.
Stash
Stash is an intuitive investment platform that lets you buy whole or fractional shares of stocks, bonds, and ETFs. Creating an account takes less than 10 minutes, and once you connect a source of funding, buying security for $10, $50, or $100 is easy.
There are two levels of plans, costing $3 or $9, depending on which features you want. The highest level gives you two custodial accounts to invest in for your kids, nieces and nephews, or grandkids. All levels give you a debit card account and a $1,000 life insurance policy.
Pros and cons
Pros
- Low minimum investment
- Offers fractional shares
- Streamlined, easy-to-use interface
- Automatic investing
- Retirement and custodial accounts available
Cons
- Not free; monthly fees start at $3
- EFTs have a high expense ratio
- No automatic rebalancing
Robinhood
With a free Robinhood investment account, you can invest in AMC stocks quickly. A fun feature is that new users receive a free stock to start investing upon successful signup. Robinhood supports fractional shares, so you can set your investing on autopilot with monthly purchases in a dollar amount you choose. It also allows pre-market and after-hours trading, which is attractive to experienced investors.
Although it's free to have a Robinhood account, you can access Robinhood Gold for just $5 a month, which allows margin trading, and you get Morningstar reports to delve deeper into investing. Small regulatory fees are passed on to users when you sell an investment.
Pros and cons
Pros
- No fee
- Can buy and sell cryptocurrencies
- Easy-to-use interface
- Offers fractional shares
- No minimum deposit to start
Cons
- Only offers taxable accounts
- No bonds or mutual funds
- Limited customer service
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Step 2: Research AMC shares
The present-day AMC Entertainment Holdings Inc. was founded in 1920 and was one of the first movie theater chains in the United States. It now has more than 1,000 theaters and about 10,400 screens across the globe.
AMC stock has had a rough up-and-down ride since it was initially offered on the New York Stock Exchange (NYSE ticker symbol: AMC) in December 2013.
Then, it started strong, reaching a stock price of more than $36 a share – double the IPO price – within two years. Unfortunately for investors who have held on, the outcome hasn’t been as positive in the years since.
AMC stock has benefitted from the online Reddit forum, WallStreetBets, which caused stock prices to jump and reach highs that hadn’t been seen since 2019.
This move gave new hope to the theater chain, which has an EPS of negative $0.62 and a negative P/E ratio of (2.73). Experts say the price target for the coming year is between $8.35 and $12.
AMC price history
It’s been a wild ride for shareholders of AMC stock. The IPO was set at $18 per share, which means that a purchase of $1,000 got you 55.5 shares. The stock saw an all-time high of just over $36 in 2015. However, it’s only been downhill, with a few peaks, since then.
As of this writing (May 2024), AMC stock is trading for $9.78 per share driven by the meme stock craze. Assuming you’re still holding on to all 55.5 shares, their value is $542 currently. That’s a loss of $458.
AMC dividend info
AMC paid out quarterly dividends from 2014 through the first quarter of 2020. The average dividend yield was 2%. All but the final dividend gave shareholders $0.20 per share. The last dividend was just $0.01 per share in December 2022.
Best features of AMC stock
Currently, AMC has a 2.79 billion market cap, giving investors hope. Here are two reasons AMC has potential.
1. The financials are improving. Theater chains, including AMC, took a massive hit during the pandemic. Many consumers are still eager to return to the movie theater experience with large screens and free-flowing soft drinks to wash down buckets of buttery popcorn. The company's top and bottom line financials are improving, and it has beaten estimates in the last four quarters. It also reported revenue of $951.4 million in the first quarter of 2024.
2. The streaming segment is growing. When theaters shut down in 2019, there was no money coming in. People streaming movies online weren’t ordering their favorite theater snacks from the theater via DoorDash. However, in 2020, AMC started offering movie streaming. It already has more than 11.5 million paid subscribers, and the streaming revenue hit $145 million in the first quarter of 2024.
Check out Motley Fool's Stock Advisor service for more information regarding AMC and other stocks.
Related: Motley Fool Review
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- Over 100 Stock Picks with 100%+ Returns
- Averaged Stock Pick Return over 593% (vs. 165% for the S&P)
- 2 New Stock Picks Every Month
- Investment Community With 700,000+ Loyal Members
- 30-Day Membership-Fee-Back Guarantee
- Joy Wallet Reader Deal: The Motley Fool is offering 50% off its top stock-picking service for new members (Limited Time)
Step 3: Open an account & buy AMC shares
Opening a Stash brokerage account is easy and won't take more than 10 minutes. You'll need a few basic details you've likely committed to memory: name, address, phone number, and Social Security Number. Easy enough, right?
Let's get started.
After you enter your name, email, address, and phone number, you'll go through a series of screens that ask quick questions, which will help the platform guide your investing.
First, you must choose a plan. If you're not sure, go with the $3 per month plan. You can always upgrade later, which is sufficient to start investing in AMC stock.
Next, you need to pay for the plan, so choose your preferred payment option. They prompt you to pay for a year at a time, but there are no extra savings for choosing that over month-to-month.
Now, take a second to choose your current employment status.
And another to choose a net worth bracket. In case you're unsure, your net worth is the total value of your assets minus liabilities. So, if your house is worth $150,000 and your car is worth $20,000, the value is $170,000.
Then, you need to subtract your mortgage and car loan amount. We'll say that the total of those two is $110,000.
The difference between those two numbers is $60,000. So, you have a net worth of $60,000.
The last of these more personal questions is about your tax filing status. Are you single, married, or widowed? If married, do you file with or without your spouse? Click the appropriate box.
Next up is how much you already have saved for retirement.
This screen asks whether or not you've paid your bills on time over the past year.
Some questions about your savings: how long will your savings tide you over if you don't have any money coming in?
And how much of your income do you spend?
Next is a question about your financial goals over the long term.
How experienced are you with investing? And what is your risk tolerance?
Hang on. Just have a few more questions. How long do you plan to invest your money?
Remember that if you need a certain amount of money within the next five years – for a down payment on a home or paying for your wedding – you don't want to invest it. Put it in something with very low risk for short-term capital preservation. You can use a high-yield savings account, money market account, or certificate of deposit.
Next, you'll need to disclose whether or not you have professional ties to the financial industry.
Now, enter your Social Security Number.
Read and agree to the terms and conditions, and you're done!
Once your account is funded, you can start investing in shares of AMC and other companies listed on the NASDAQ and Dow Jones.
Click the “invest” button and search by the stock’s name or symbol.
Choose how much you want to invest, and click the buy button.
You’re all done!
FAQs
How much were AMC shares when the company first went public?
When AMC Entertainment Holdings, Inc. went public in December 2013, shares were $18 each.
How much does it cost to buy AMC shares today?
As of this writing, in May 2024, AMC shares are trading around $9.78 per share.
Does the AMC stock pay dividends?
From 2013 until the second quarter of last year, 2020, quarterly dividends were paid out to AMC shareholders. It last paid a dividend of $0.01 in December 2022.
What is the minimum number of AMC shares that I can buy?
Some stockbrokers require investors to buy whole shares of a stock, but on platforms such as Stash and Robinhood, you can purchase fractional shares. So if you don’t want to commit to a full share of AMC stock, you can buy $5 worth of it.
The bottom line
In today's fast-paced financial world, where real-time information is key, investing in stocks like AMC Entertainment requires a keen eye on their share price movements. It’s impossible to predict the future, and while these days are dominated by streaming platforms, a significant number of people still relish the experience of watching a movie in theaters, popcorn in hand. This enduring appeal of the cinema experience suggests that AMC could continue to benefit, fostering a sense of optimism among investors.
Keeping track of AMC's share price in real-time is crucial due to the inherent volatility of the stock market, especially for a company like AMC that sits at the intersection of traditional cinema and modern entertainment trends. The Motley Fool website is an excellent resource for up-to-date opinions on AMC’s stock valuation and other market data, providing investors with the real-time insights needed to make informed decisions.
When it comes to investing in AMC Entertainment stock, caution is advisable. The volatility of its share price is a factor to consider seriously. Before deciding how much to invest in AMC, reviewing the latest real-time data and market trends is wise. Furthermore, diversifying your portfolio remains the most effective strategy to reduce overall risk in the unpredictable world of stock investment. This approach is particularly important in a market where single stock movements, like AMC's share price, can be swift and significant.
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Writer
Charlotte Edwards is an educator-turned-freelance writer based in Beijing, China. She writes personal finance and parenting content for both digital and print publications around the world.
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