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Many on Wall Street are betting against AMC Entertainment. Its stock has plunged 75%, erasing nearly $3 billion in market cap.

Questions:

  1. What factors are hurting AMC sales numbers?
  2. Over what period has AMC the drop in sales?
  3. What has happened to the theater chain’s free cash flow and debt?

Source:

Sullivan, C. and A. Morrell. (2020). Wall Street is betting AMC is in a downward spiral. Business Insider.com, Feb. 17 (Retrievable online at https://www.businessinsider.com/amc-entertainment-stock-price-drop-ceo-adam-aron-silver-lake-2020-2)