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Despite the favorable backdrop, leading movie theater chain operator AMC Entertainment Holdings Inc. (AMC) hasn’t been able to keep up with industry trends. Consequently, AMC’s net loss came in at $566.9 million in its last reported quarter, and its operating loss was $427.8 million. Although the stock is up 1560.4% so far this year due to retail investors’ social-media-triggered interest, we think its excessively stretched valuation could lead to a downtrend in the near term.
In contrast, top entertainment companies Comcast Corporation (NASDAQ:CMCSA), Sony Group Corporation (NYSE:SONY), and Activision Blizzard Inc. (NASDAQ:ATVI) will likely experience a surge in demand because they are investing extensively in R&D to introduce new games and entertainment platforms aligned with consumer interest. Therefore, we believe these stocks are better bets than AMC.
