What happened

Shares of AMC Entertainment Holdings (AMC -4.04%) stock stumbled 6% in early trading on the New York Stock Exchange this morning, and remain down 5% as of 10:45 a.m. EDT. But why?

I mean, didn't Citigroup just this morning raise its price target on the movie theater chain stock by 35%?

Simple red arrow declining stock chart on a white checked background

Image source: Getty Images.

So what

Well, yes, it did. As StreetInsider.com reports today, Citigroup this morning gave AMC a price target hike from $3.70 per share to $5 even. Problem is, right now AMC stock is trading closer to $35 a share than to $5. And this means that, basically, Citigroup just said AMC stock is doomed to lose about 85% of its value over the next 12 months.

As the analyst explained, not only has AMC been forced to take on a massive debt load, in excess of $11 billion, to keep itself solvent through the pandemic -- "elevated leverage" that is "an added risk to an uncertain recovery," in the analyst's view. On top of that, the rise of at-home video streaming and concurrent movie releases both in theaters and on folks' television sets means "the strategic role of exhibitors is diminishing," warns the analyst.

Now what

Little wonder, therefore, that Citigroup is maintaining its sell rating on this totally profitless stock. I can't say I disagree.