Reddit’s favourite movie theater chain AMC Entertainment Holdings, (NYSE:), seems to have gotten over the $72 price drop. WallStreetBets’ retail investors remain fonder than ever of the name. The stock has risen more than 73% in the past twelve months.

The management has taken advantage of the stock’s resurgence and used its money to help ticket sales rise again, despite the recent increase in Delta variant cases throughout the United States.

AMC stock is at such high levels despite recent efforts and possible reopening momentum for 2022. At the moment, I’m neutral about AMC stock. (See AMC stock charts on TipRanks)

AMC Makes Use of Its Funds

Earlier this month, AMC launched its $25-million ad campaign featuring actress Nicole Kidman. This is a rare occurrence for a film theatre company to run an advertisement. AMC may be able to make marketing efforts with the money it has if it is able.

For an unforeseeable amount of time, indoor restrictions may continue to be in effect. Another variant, perhaps Mu, could be driving the next wave once Delta is exhausted. AMC cannot avoid future COVID-19 wave effects regardless of how much advertising or marketing spend.

Many pre-pandemic filmgoers who were avid moviegoers will be reluctant to return to the silverscreen, even in areas that have no restrictions.

AMC’s latest ad would undoubtedly entice these fence-sitters. AMC has taken the video streaming market by storm, long before the outbreak of coronavirus. If the ads do pay off, it’s not just Nicole Kidman who is to be commended. WallStreetBets AMC shareholders are also involved, who probably get more popcorn because they have been able to withstand recent volatility.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, AMC stock comes in as a Hold. Three Holds are out of the four analysts’ ratings and one is a Sell.

The average AMC price target is $11.75. The average price target for AMC shares is $11.75.

Bottom Line

There are meaningful catalysts on the horizon for AMC. AMC’s stock could reach its maximum heights thanks to recent ad spend and hot movies like The Matrix Resurrections or No Time to Die.

However, WallStreetBets investors are yet to decide when they will move on or if any major quarters can lift the stock’s performance after its stellar past-year.

Disclosure: Joey Frenette did not hold shares in any of the mentioned companies at publication.

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