Analyst Explains Recent Price Action Of AMC Entertainment Stock Ahead Of Earnings

The recent price action in AMC Entertainment Holdings Inc AMC is showing that retail investors are selling the stock, Lightshed Partners analyst Rich Greenfield said Monday on CNBC's "Squawk Box."

"The reality is the short interest has really dried up. The crazy thing now is that you've got a lot of retail shareholders trying to convince other retail shareholders to buy the stock, while they're clearly dumping the stock," Greenfield said.

The reason that retail investors are selling the stock makes a lot of sense, he added.

The box office is very underwhelming because there just aren't enough people willing to go to the theaters, Greenfield told CNBC "Especially for family films, it seems like financial suicide."

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The main short thesis on AMC is that the movie studios don't care about the movie theaters; instead, they're focused on making money on content, he said.

The core movie business isn't the reason potential investors want to invest in any large media company, rather it's all about streaming, Greenfield said. Investors are going to reward companies for streaming, not box office dollars, he added.

AMC is set to report its second-quarter financial results after the market closes today.

AMC Price Action: AMC has traded as high as $72.62 and as low as $1.91 over a 52-week period.

At last check Monday, the stock was down 0.58% at $32.51.

See also: How to Buy AMC Stock

Photo: Paul Sableman from Flickr.