How to Buy AMC (AMC) Stock

Get right to it: Invest in AMC stock with Interactive Brokers as your online trading platform.

As the world of entertainment has evolved, so too has the volatility of stocks like AMC. This theater giant captured headlines during the pandemic when it became a focal point for retail investors and a symbol of resilience amid financial turmoil. However, with great hype comes great complexity. Navigating the world of stock investment requires not just knowledge but also strategy, especially when it comes to a high-profile stock like AMC.

Whether you're a seasoned investor or just starting your financial journey, understanding how to buy AMC stock is key to making wise decisions. It's more than just clicking a button; it involves research, timing and an awareness of market trends. With the right approach and tools, you can confidently add AMC to your investment portfolio.

How to Buy AMC Stock

Follow these simple steps when you’re ready to buy AMC stock:

Step 1: Pick a Brokerage

An online broker makes it easy for you to buy and sell stock on the go from your phone or via a desktop platform. Signing up online is simple, but choosing the best brokers should take a bit more time and legwork. 

Brokerages know you want a streamlined experience with built-in tools, education and analytics. Determine your own priorities for the service you expect and compare that list with each platform’s offering. 

Take a look at our considerations for choosing a broker before you commit:

• Do you want a self-managed or advisor-managed account? If you’re an experienced, confident trader, self-managed is a good option. Beginners can benefit from an advisor and you may want to pay the additional fees. 
• How much do you want to pay in fees? Commissions may apply. Do the math before you start trading and don’t forget about annual fees or fees per share.
• What is the account minimum? Some platforms have $0 minimums. Others have higher account minimums and some brokers may have penalties if your minimum isn’t met. Check into each trader’s requirements.
• What kind of data do you need? And how much? Some brokerages have platforms with market data fully integrated. 
• Do you want a desktop, web-based or mobile experience? Pay attention to whether or not a broker’s design is reportedly intuitive or clunky.
• What type of customer service do you expect? Many platforms can deliver 24/7 live customer support via chat or email. Don’t settle for less. 

Step 2: Decide How Many Shares You Want

The number of shares you should buy depends on the price of AMC. For example, let’s say you have $2,000 to invest and AMC’s current stock price is $5 (so you’re comfortably under the stocks under $10 category). You could buy 400 shares of AMC stock. The number of shares you buy depends on your risk tolerance as well. Investing in a single stock opens you up to less diversification than if you were to, say, invest in a mutual fund or ETF. 

Step 3: Choose Your Order Type

If you’re new to investing, you want to know several stock order types to understand before you purchase AMC stock. Your broker will ask you which type of order you want to place. 

Here’s our quick rundown of the most common orders you’ll encounter:

• Bid: The bid price represents the maximum amount of money that a buyer is willing to pay for a share of AMC stock.
• Ask: The ask is the price a seller is willing to accept for a security. This is also referred to as the offer price.
• Spread: The spread is the difference between the lowest ask price and the highest bid price. For example, if the lowest ask price for a share of AMC stock is $5 and the highest bid price is $4.75, then the spread for AMC stock is $0.25.
• Limit Order: A limit order is a type of order to purchase or sell a security at a specified price or better. For buy limit orders, the order will execute only at the limit price or lower. For sell limit orders, the order will be executed only at the limit price or higher. Limit orders allow you to better control the prices you trade. 
• Market Order: A market order tells your broker that you want to buy the next available shares of AMC, no matter how the market moves. When you place a market order, you won’t specify a price that you’d like your order to execute. Your broker will fill the order as soon as it’s possible to do so. Market orders give you less control over what you pay per share of AMC. 
• Stop-Loss Order: A stop-loss order is an order placed with a broker to buy or sell a stock once the stock reaches a certain price. This order can limit your loss on a security position. For example, setting a stop-loss order at 10% below the price at which you bought AMC stock will limit your loss to 10%.
• Stop-Limit Order: A stop-limit order combines a limit order and a stop-loss order. When you place a stop-limit order, you specify both an upper limit price and a lower stop price. When you buy AMC, you might set a limit price of $190 and a stop price of $185. Let’s say the cost rises above $190. Your stop-limit order converts to limit order and your broker fills the order as long as you can purchase AMC for $190 a share or less. If the price rises above $190, your broker will stop filling the order. 

Step 4: Execute Your Order

Execution is simply the completion of a buy or sell order for a security. But it’s important to remember the execution of an order occurs when it is filled, not when you — the investor — place it.

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AMC Stock History

AMC Entertainment Inc. delivers the highest revenue-producing and entertaining movie-going experience in the world through its American Multi-Cinema Inc. subsidiary. A few highlights: 

• AMC was incorporated in 1968 but the business began in 1920 by a struggling actor working for a traveling tent show. 
• During the 1920s and 1930s, a few theatres opened in the Kansas City area.
• In 1999, AMC ran 200 theaters with 2,800 screens in 23 states. 
• AMC generated annual ticket sales of nearly $1,030 million in 2000.

In January 2021, AMC stock experienced a massive rally, where prices soared from about $10 at the start of the month to around $60 by the end, driven by a surge of buying from retail investors looking to exploit short squeezes against hedge funds that had heavily shorted the stock. This phenomenon captured mainstream attention and prompted further interest from momentum traders, resulting in an all-time high for the stock at around $339.02 in June 2021, fueled by both retail enthusiasm and renewed hope for the recovery of movie theaters post-pandemic.

Following the peak, however, AMC’s stock price encountered significant volatility and a gradual decline as fervor among retail investors dissipated and broader market conditions changed. By 2022, AMC shares fluctuated between $60 and $80, reflecting reduced demand from short squeeze traders and renewed concerns regarding the theater industry’s long-term viability.

AMC stock chart as of 8/26/24. Source: TradingView

As of 2024, AMC's stock continued to hover at levels way significantly lower than its peak but remained a subject of discussion among investors and analysts keenly observing the company's operational recovery and potential future in a reshaped entertainment landscape.

Pros of Buying AMC Stock

Buying AMC stock presents several advantages that make it an appealing investment choice for those looking to capitalize on the opportunities within the entertainment and movie theater industry.

• Potential for high returns: Buying AMC stock can offer substantial potential for high returns, especially given the volatility and popularity of meme stocks. Investors who bought in during the surges have seen significant gains as the stock rallied due to retail investor enthusiasm.
• Growing streaming market adaptation: AMC is adapting to the evolving entertainment landscape by investing in streaming partnerships and enhancing its overall movie-going experience. This strategic shift could position the company favorably in a new era of content consumption.
• Strong community support: AMC has attracted a loyal community of retail investors who have rallied behind the stock, driving interest and engagement. This supportive investor base can create sustained momentum and potential price appreciation.

Cons of Buying AMC Stock

While there are potential benefits to investing in AMC stock, it's crucial to consider the cons that accompany this decision, which can significantly impact both short-term and long-term investment outcomes.

• Market volatility: AMC stock has experienced significant volatility, which can lead to unpredictable price swings and potential losses for investors. Such fluctuations can be stressful for those who prefer more stable investment options.
• High debt levels: AMC carries substantial debt from its pre-pandemic operations and subsequent survival efforts, which could limit its financial flexibility. This high debt load poses risks, especially if the company fails to generate sufficient revenue to cover interest payments.
• Competition from streaming services: The rise of streaming platforms has intensified competition for traditional movie theaters, and AMC may struggle to retain audience interest. If consumer behavior continues to shift towards at-home viewing, AMC's revenues could face long-term pressure.

Are You Buying AMC Stock Now?

While it’s tough to bet on whether AMC is destined for long-term gains, anything is possible. Connect with an online brokerage and buy AMC stock today if you want to pocket some short-term success. Watch stocks like AMC carefully because you can use them to increase your net worth with a quick purchase and sale, or you might build wealth while holding onto a stock that could continue growing in the future.

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