AMC in 2025: Why a 35% Crash Doesn't Mean It's a Bargain

AMC Entertainment has become a cautionary tale for meme stock believers. Down 99% from its 2021 peak and another 35% YTD, the former short-squeeze darling is now trading around $2.50—cheap on paper, but fundamentally overvalued in reality.

The Numbers Don’t Lie

Here’s the trap: low stock price ≠ good valuation. AMC trades at an EV/EBITDA ratio of 21x, while competitor Cinemark sits at just 8x. That’s nearly 3x pricier when you actually do the math.

Why the gap? AMC still hasn’t returned to pre-COVID profitability levels, and forecasts suggest U.S. theater revenue won’t fully recover until 2029—that’s still 4+ years away. The company also diluted shareholders massively when it sold new shares to survive 2021-2023, a classic value destroyer.

GameStop Still Winning (Sort of)

Interestingly, GME is still above its pre-meme entry point in the low $20s. AMC? It’s not even close. That tells you everything about execution and pivot strategy post-hype.

The Real Take

Even if AMC rallies on earnings noise, the structural headwinds remain brutal. Streaming cannibalized theater attendance, and the recovery thesis is priced in already at these multiples.

If you’re bullish on cinema, buy Cinemark instead—same thesis, 62% cheaper valuation. AMC is still a casino play, not an investment.