What's Happening With AMC Stock?

AMC Entertainment Holdings Inc AMC shares are trading lower by 2.7% to $4.28 Tuesday afternoon. The marginal move lower comes without company-specific news for the session. Stocks across sectors are volatile ahead of Wednesday's Fed meeting and due to concerns about interest rates. The Federal Reserve Open Market Committee (FOMC) meeting starts on Tuesday and ends on Wednesday.

Like many companies, AMC relies on borrowing to fund its operations, expansion, and capital expenditures. Any indication of rising interest rates or tightening monetary policy could increase the cost of borrowing for AMC. This would potentially reduce its profitability and constrain its ability to invest in growth initiatives, such as opening new theaters or upgrading existing ones.

Changes in interest rates can also impact the competitive landscape within the entertainment industry. If rising interest rates lead to higher borrowing costs for AMC, it may face increased pressure from competitors with stronger financial positions or alternative entertainment options that are less sensitive to interest rate changes. This could potentially affect AMC’s market share and revenue growth prospects.

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What's Going On With The Fed?

Investors are eagerly awaiting the upcoming FOMC meeting, viewing it as a significant market event for the first quarter of 2024. While the interest rate decision is expected to remain steady, attention is particularly drawn to the "dot plot," which outlines the anticipated interest rate trajectory of FOMC members.

Previous plans for rate cuts in 2024 and 2025 are now under scrutiny due to recent inflation data surpassing expectations…Read More

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How To Buy AMC Stock

By now you're likely curious about how to participate in the market for AMC – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of AMC, which is trading at $4.29 as of publishing time, $100 would buy you 23.31 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, AMC has a 52-week high of $62.30 and a 52-week low of $3.58.