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Forget AMC's Stock. Is The Business Worth Owning?

By Brian Stoffel and Brian Feroldi – Updated Jun 16, 2021 at 12:46PM

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Instead of immediately looking down at small retail investors, let's see if there's a point to be made.

If you told an investor in 2020 that -- in less than a year -- AMC Entertainment Holdings (AMC -1.70%) would be worth as much as two American Airlines Groups combined, you would have been laughed out of the room. If you told those same folks that the moves would be driven by small retail investors looking to stick it to hedge funds, you would've been asked if you were feeling OK.

And yet, that's the world we find ourselves in today. While many have shrugged off the decoupling of a stock's price and its underlying business, we shouldn't be so quick to ignore an entertainment industry that's bound to rebound when the pandemic subsides.

In this June 7 video on their YouTube channel, Motley Fool contributors Brian Feroldi and Brian Stoffel discuss the merits of investing in AMC's underlying business of movie theaters.

Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

AMC Entertainment Holdings Stock Quote
AMC Entertainment Holdings
$7.51 (-1.70%) $0.13
American Airlines Group Stock Quote
American Airlines Group
$14.50 (0.56%) $0.08

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