Dec. 11 at 5:52 AM
$AMC “AMC has lost over
$9B in its lifetime, and that's the fundamental problem. Even if you look at just 2025 comprising of 9 months, it lost
$505M. If you make
$60,000 in income but pay
$70,000 in interest, you're not in good shape. AMC didn't even make a profit the year Avengers Endgame came out, when the box office was a third higher than it is today. The business was doing poorly even before COVID. If you value the EBITDA at a discounted cash flow for the trailing twelve months, add in the debt to obtain the enterprise value and the price that a potential buyer would be willing to pay for AMC, you'd find that the company is valued at pretty much at the price you'd expect. And if all the shares just authorized today were actually issued? Then a fair valuation of the stock would be roughly half of today's closing price.
AMC's core issue is, and remains, that it needs to generate
$10M of operational cash flow per week just to break even by paying off just the interest.”
