Algorithm Predicts 500% Surge in AMC Stock Price by 2024: Growing Revenue to Drive AMC Share Price Growth?

Key takeaways:

• AMC stock price rallied by +25% in the last 5 days, setting a new monthly high above the $10 mark
• In the same timeframe, the S&P 500  NASDAQ grew by “just” a little more than +2%
• Per algorithmic predictions, the price of AMC stock could be primed for a +500% upswing in the next 12 months

AMC stock price rallied +25% in the past week while the broader market traded sideways

AMC Entertainment Holdings, Inc. (AMC) showcased robust market performance in the last week – the AMC stock gained roughly +25%, extending its monthly gains above 37%. The notably positive price activity came at a turbulent time for stocks and broader financial markets. Case in point, the two leading stock indexes, the S&P 500 and tech-focused NASDAQ, lost -2.7% and -3.1% in the past month, respectively.

The reason behind AMC’s stock price rally could be that its financials are beating experts’ expectations, making investors more confident in the entertainment company’s prospects for the short- to medium-term. The company posted a higher-than-expected quarterly profit of $0.01 per share in August, a significant increase over estimated EPS for AMC stock of negative -$0.50.

AMC beat experts’ EPS estimates in the last 3 out of 4 quarterly earnings reports.

In addition, AMC’s revenues are expected to increase by roughly 19.1% to $1.15 billion in the upcoming earnings report due for November 2023, up from approximately $0.97 billion in the same period last year.

AMC stock price prediction 2024: Algorithm predicts bullish action, but beware of shaky fundamentals

The CoinCodex algorithm predicts a +518% increase in AMC’s stock price by 2024, predicting a bullish 12-month trend for the company, culminating with the stock trading at roughly $61 per share next October. The price model accounts for 26 technical analysis indicators, including Daily Simple Moving Average (SMA), Daily Exponential Moving Average (EMA), and Relative Strength Index (RSI). Out of all indicators tracked by CoinCodex, 22 are signaling bullish activity, and 4 are signaling bearish action.

The algorithm forecasts positive price activity for AMC stock over the next year.

It is worth noting that predictions produced by algorithms can provide helpful insight, but they should be used alongside different types of analysis when deciding to buy AMC stock, or any other kind of financial instrument for that matter.

Speaking from the fundamental analysis standpoint, AMC hasn’t turned a profit since 2019, recording 4 straight years of losses. Still, the AMC stock price reached its all-time high of more than $230 during this time frame, despite the COVID-19 pandemic that severely affected global moviegoer audiences. The reason for the unusual market behavior can be attributed to the fact that AMC is considered a “meme stock”, much like GameStop (GME) or Bed Bath & Beyond (BBBY). These stocks have gained sudden popularity in recent years on the internet, which has led to sky-high prices and unusually high trading volumes.