Will AMC Stock Rebound in the Long Term?

Key Takeaways

• AMC showed signs of growth through 2024 after Roaring Kitty made a comeback to social media.
• AMC's financial fundamentals show slow signs of growth, but still face multiple challenges, acting as the driver for why AMC's stock is so low.
• AMC's stock is a meme stock, meaning sentiment-following investors are driving the AMC stock price, meaning investors should be cautious.

Introduction

For any of you who were part of this extraordinary event, you would remember the exhilaration, excitement, and feeling that Wall Street was taking a hard hit vs Main Street for once. However, all good things ultimately end, but does this not mean there's hope for an AMC resurgence, and will AMC stock rebound in the long term?

AMC was part of the 2021 meme stock phenomenon, where it hovered around $9.32 in 2020 and surged to over $260 in 2021, garnering a lavish return of over 2,705.15%! In this article, I will go through AMC's key indicators and uncover whether there is potential hope of a reignition among investors to see an AMC rebound.

Return of Roaring Kitty

Keith Gill, famously known as the “Roaring Kitty,” was the centerpiece of the AMC meme stock craze back in early 2021, an individual who simply "just liked the stock" and amassed a large following of like-minded retail investors who followed his support for the AMC company.

Back in May of 2024, Keith made a return to social media, reigniting interest in meme stocks, including AMC. As a result, AMC shares jumped by 78% before dropping back down to pre-social post levels. This unfortunately indicates less support and hype in the stock vs its 2021 days.

Perhaps if Keith Gill makes a grand return and gains the attention of other influential investors and figures, AMC's stock may rebound again and see strong returns similar to those during its famous stock surge.

Financial analysis of AMC in 2025

Analyzing AMC's technical indicators

On March 10th, 2025, AMC’s stock rose by 5.8% in after-hours trading, potentially fueled by positive buzz around the company’s spring lineup of new films, including the anticipated releases of Moana 2 and other potential blockbusters.

This slight uptrend suggests lingering retail investor sentiment, even if slightly less popular compared to the meme stock frenzy of 2021, and the 2024 slight rebound.

Price trends and moving averages

For you moving averages investors, as of March 12th, AMC’s stock price hovers at $2.9, sitting below its 20-day ($3.32), 50-day ($3.79), and 200-day ($4.47) simple moving averages.

This positioning continues to signal a bearish trend for AMC stock. In addition, the Relative Strength Index (RSI) stands at 34.27, still in a moderately oversold sector meaning investors may have lost interest in holding the stock, or, a reversal might be around the corner.

Support and resistance levels

Key Fibonacci retracement levels point to immediate support at $2.80 and resistance at $3.82 on the daily timeframe. A drop below $2.80 could trigger further declines and bearish momentum, potentially testing $3.37, while a break above $3.48 might spark optimism for a modest recovery or even a short-lived bullish AMC rebound.

Volume and volatility

Trading volumes in early 2025 have remained lukewarm, averaging 12 million shares daily over the past week, with no notable spikes to suggest a resurgence of aggressive buying. The Average True Range (ATR) sits at 0.23, reflecting low volatility and a lack of dramatic price swings, consistent with a market awaiting a catalyst.

Sentiment and news impact

AMC’s 2024 ended on a challenging note, with a 34% annual stock decline despite robust box office attendance driven by hits like Wicked and Gladiator II.

In 2025, the meme stock phenomenon has further faded, and AMC’s fundamentals, burdened by debt and a shifting theatrical landscape, show little sign of near-term improvement.

However, the company’s ability to capitalize on a strong Q1 2025 release slate could provide a temporary lift, though analysts remain skeptical of sustained growth without deeper structural changes.

AMC Key Financial Performance Overview of 2025

Revenue & profitability of AMC

Between Q3 of 2024 and Q4, AMC's revenue dropped by 2.9% to $1.31 billion, and finished the year 3.5% lower compared to 2023 at $4.64 billion. Although AMC's gross profit increased from $1.15 billion to $3.09 billion the company's overall operating profit fell by $113.6 million placing AMC into a debt deficit of -$79.3 million.

Debt management

In 2025, AMC continued its debt reduction efforts, trimming an additional $100 million in Q1, bringing the total debt reduction since the start of 2024 to $449 million. With long-term maturities now extended to 2029 and 2030, the company has reduced its debt load to approximately $4.4 billion, easing immediate pressure but still leaving a significant burden relative to cash flow.

Valuation analysis of AMC stock

To assess AMC’s stock outlook in 2025, we must evaluate its current financial position against its market metrics. As of March 12, 2025, AMC trades at $2.95, with a market cap of approximately $1.27 billion and an enterprise value (EV) of $11.6 billion (adjusted for debt reduction and cash growth).

EV/EBITDA ratio

AMC’s EV/EBITDA ratio remains elevated at around 28.7x, far exceeding the entertainment industry average of 10-15x. This suggests persistent overvaluation relative to earnings, though improved EBITDA narrows the gap slightly from 2024.

AMC's price-to-sales ratio stands at 0.27, based on projected 2025 revenues of $4.5 billion. This low figure continues to signal low investor confidence toward AMC's stock, reflecting skepticism about AMC’s ability to return to pre-pandemic revenue levels.

With a negative price-to-book ratio (due to a book value eroded by cumulative losses and debt), AMC’s financial distress remains evident, though debt reduction efforts in 2025 can slightly offset these issues, although, will take a long time before any real impact is made.

Will AMC stock go up again?

This is a difficult question to answer. If I knew with certainty, I'd certainly be positioning myself ready to take full advantage of the market. However, I, like you, can only go off an interpretation of the market and AMC's financial health.

From a financial standpoint, both AMC's technicals and fundamentals are showing bearish momentum, and signs of reversal seem unlikely, at least in the short-term. On the other hand, we may see a community rally behind the stock that will push AMC toward bullish levels and return to GameStop saga levels, but again, there are no signs of this happening for now.

Despite these positive indications, AMC still faces multiple challenges, particularly with its debt. The company has been very proactive in managing its financial obligations and succeeded in raising capital through equity sales but it's still early days to see whether AMC's stock can recover.

Should I buy AMC stock?

Based on the above analysis on AMC, I would certainly be cautious, and ensure I have taken the necessary steps to mitigate the risk level. However, AMC remains a popular meme stock largely influenced by social media trends and large volumes of retail investor sentiment.

Due to this, AMC stock may rebound in the long term dramatically if a social buzzstorm begins to break out. As an investor of AMC stock, you will want to constantly monitor social trends and news sentiment toward this stock. A great way to do this is by using our News Sentiment feature, allowing you to stay up-to-date on any stock's live news updates with just one click.

Frequently Asked Questions

What happened to Roaring Kitty?

We saw Keith Gill, AKA Roaring Kitty, briefly reappear on social media in May of 2024, sparking a brief surge in Gamestop's stock price, but he later went silent again, leading many meme stock investors to speculate whether he will fully return to the limelight.

What is AMC famous for?

Generally known for its expansive influence across the TV and movie industry, AMC found new popularity within the stock market as a meme stock sparked by the Gamestop saga influenced by Roaring Kitty back in 2021.

Does AMC pay dividends?

No, currently AMC shareholders are not paid dividends. However, the company has historically paid dividends to shareholders. Any dividends paid by AMC are subject to an approval process prior to any dividend payouts.

Conclusion

Conducting a financial analysis can often uncover several holes that could be overlooked. In the case of AMC stock and whether it will rebound in the long term, we can't be overly certain of a reversal trend. Although the company is making strides in reducing its debt levels, it still has a long way to go.

On the other hand, because AMC stock has found itself among other meme stocks, propelled by market sentiment, the stock may see bullish or bearish market volatility over the next several years. It would be wise to have minimal exposure to this stock until you see clear bullish momentum.