AMC Entertainment (NYSE: AMC) made headlines with a meteoric rise fueled by a short squeeze in 2021 akin to a shooting star streaking across the sky. However, post this celestial display, AMC’s stock has plummeted like a fallen comet. Its failed attempts at capital raising and wavering fundamentals have left investors starstruck, with many selling off their positions.
If you’re an investor seeking solid footing in the movies and entertainment sector, there are alternative constellations shining brighter than AMC. Here are three stocks deserving of your attention:
Netflix (NFLX)
Netflix (NASDAQ: NFLX) stands as a towering monolith in the streaming realm, offering a stellar array of entertainment media. Its recent performance has been nothing short of blockbuster, with share prices soaring on the back of improved profitability and rampant subscriber growth. A recent earnings report showcased a galactic 13% increase in revenue and subscribers year-over-year, marking it as one of the market’s brightest stars.
Netflix’s crackdown on password sharing sparked a cosmic surge in new subscribers, catapulting its customer base to levels unseen since the streaming giant’s pre-pandemic era. With a recent earnings beat and a trajectory that’s light years ahead of the competition, Netflix shines as a far superior choice compared to AMC.
Disney (DIS)
Disney (NYSE: DIS), the entertainment behemoth, continues to dazzle with its cinematic prowess and theme park magic. A recent first-quarter earnings report showcased a meteoric rise in net income and a celestial 50% dividend increase, sending investors into orbit with a 12% surge in share price.
The company’s 2024 projections promise a galaxy of untold riches with an expected 20% boost in profitability, cementing Disney’s position as a reliable investment constellation in contrast to AMC’s fading star.
IMAX (IMAX)
IMAX (NYSE: IMAX), the master of immersive entertainment experiences, reported mixed financial results for 2023. While a slight dip in earnings per share and total revenue may raise some eyebrows, the company’s stellar full-year growth numbers paint a picture of a budding supernova in the making.
Despite a recent lukewarm showing in the market, IMAX’s robust business model, soaring investor interest fueled by recent blockbuster movie releases, like “Dune 2,” and a trajectory that’s light years ahead of its past performance make it a compelling cosmic investment compared to AMC’s flickering flame.
Every shining light in this cosmic investment landscape beckons investors to look beyond the fading glow of AMC and toward brighter horizons. With Netflix, Disney, and IMAX offering a galaxy of opportunities, the entertainment sector proves to have a universe of potential waiting to be explored.