Don't Buy AMC Entertainment Until This Happens
AMC Entertainment (NYSE: AMC) may be down by more than 99% from its meme-stock-era highs, but that hasn't stopped investors from speculating in the movie theater operator's shares lately. Following a spate of positive news about ticket sales, shares zoomed earlier this month from under $1 to around $1.75.
Yet while the stock has so far held on to most of these gains, I am of the view that AMC remains one of the most overvalued stocks on the market, and not worth buying.
Why? It all has to do with the company's high debt position and how this factor will limit the stock's long-term ability to bounce back, even if U.S. box office revenue returns to its pre-COVID levels.
Source Fool.com
