2 Entertainment Stocks That are a Better Buy Than AMC
StockNews
Published Jun 17, 2021 02:08PM ET
Updated Jun 17, 2021 03:30PM ET
2 Entertainment Stocks That are a Better Buy Than AMC
AMC’s aggressive marketing strategy has made it one of the most popular meme stocks, with triple-digit price gains over the past month. However, we think its weak financials and growth outlook make it best avoided now. Rather, investors seeking to capitalize on the booming entertainment industry should instead bet on Fox Corporation (FOXA) and News Corporation (NWSA).AMC Entertainment Holdings, Inc. (NYSE:AMC) has been the most profitable meme stock so far this year, with 2502.8% gains year-to-date. The stock has gained 325.1% over the past month. AMC shares regained their popularity when the company announced perks for its retail investors, including a free tub of popcorn and invitations to special screenings.
However, AMC’s poor financials have been a major concern for some time. And insiders have been selling AMC stock amid its rally because the company’s growth prospects look bleak. So, we think it is a highly risky investment bet now.
As the gradual reopening of the economy improves the prospects for entertainment companies, however, investors could bet on relatively stronger companies in this space. Fox Corporation’s (FOXA) and News Corporation’s (NWSA) strong financials position them well for stable returns. So, we think these stocks could be better picks than AMC.
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