Shares of iconic movie theater operator AMC (AMC 0.87%) have continued to disappoint: As of Dec. 1, they were down by more than 41% this year. Unfortunately, AMC finds itself in a business that has fallen out of favor, as more and more often, people choose to skip the theatrical experience and watch movies in the comfort of their homes on high-definition TVs through an array of streaming apps.
In the third quarter, AMC's revenues declined by nearly 4% year over year, and the company reported a loss of $0.58 per diluted share. Its total movie theater attendance fell over 10%, with declines both in the U.S. and internationally. It's possible that the movie theater industry just had a bad quarter, as AMC reported that Thanksgiving week was its busiest of the year, with 6.9 million guests.
However, AMC also has significant debt on its balance sheet. The company is likely to face an uphill battle, operating from a position of weakness in an industry that's undergoing a period of transition. That's why I would recommend ignoring AMC stock in 2026 and loading up on another movie theater stock instead.
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An opportunity for investors in the movie theater space
Experienced investors know that even in industries that appear to be on the decline, overlooked opportunities often exist. Investors interested in the movie theater industry should consider Cinemark (CNK 9.35%).
Cinemark has succeeded by elevating the movie theater experience with improvements like recliner lounge seats and by providing more of the types of experiences that one can't get at home, including motion seats, IMAX screens, and a 270-degree viewing experience at select theaters.
NYSE: CNK
Key Data Points
These innovations appear to have worked. Through the first nine months of 2025, the company grew its revenues by nearly 5%, and it reported close to a 21% adjusted EBITDA margin in the third quarter. Its debt levels are also much more manageable, as evidenced by the capital distributions it made in the third quarter. The company's board of directors authorized a $300 million share-repurchase program and hiked its dividend by 12.5%.
Management is focused on maintaining a strong balance sheet, growing revenue in areas such as concessions that yield good returns on investment, and continuing to provide consumers with unique experiences. Given all these factors and the fact that the company is trading at less than 1 times revenue, I think the stock offers upside in an industry that many investors aren't paying attention to.
