AMC Stock Nears Another All-Time Low. Could News on Nov. 5 Help Turn Things Around?

One glance at AMC Entertainment (NYSE: AMC) stock may lead you to assume it is curtains for the movie theater chain. Rising competition from streaming and the lower cost of home theaters have made consumers less inclined to visit movie theaters.

Moreover, AMC may have squandered the opportunity that the temporary rise in the stock price in 2021 brought about to fix the issues with the company.

Still, the company will release its financial results for the third quarter of 2025 on Nov. 5. Amid the anticipated release, can AMC stock start winning Oscars, or will the entertainment stock continue to flop like a Golden Raspberry Award-winning movie?

The state of AMC's industry

This struggle has occurred as ticket sales do not seem to be coming back to pre-pandemic levels, which stood at 1.22 billion ticket sales in 2019, according to The Numbers. In the following year, forced closures from the pandemic took ticket sales down to 220 million in 2020.

The industry brought sales back to 940 million by 2023, likely helped by the release of Top Gun: Maverick, which by itself grossed $718 million domestically and about $1.45 billion worldwide.

In 2024, sales receded again, and now the industry is on track to sell an estimated 769 million tickets in 2025.

However, that stabilization makes an important point. The movie theater industry is not going away; it is merely shrinking. The number of tickets sold indicates the industry might have found a footing and looks to be on the rise.

That has shown up in AMC's revenue levels. In the first half of 2025, the company reported nearly $2.3 billion in revenue, a 14% increase from the same period one year ago.

Additionally, viewers have shown the industry that they will come back for movies they like. Films such as Superman, Jurassic World Rebirth, and Mission: Impossible – The Final Reckoning performed well. Also, the upcoming release of Avatar: Fire and Ash in December could further boost ticket sales.

Image source: Getty Images.

How the challenges affect AMC stock

Still, all of those movies are sequels, and the lack of ability to draw viewers with original material could bode poorly for the industry long term. This is concerning, since AMC stock is down by around 99.6% from its split-adjusted high of $726 per share. Interestingly, it reached that price after the onset of the Covid-19 pandemic as meme stock investors from platforms like Reddit bid the stock to stratospheric levels.

However, the stock lost nearly all its value as the reality of depressed ticket sales took hold. Investors stayed home as competing forms of entertainment took precedence. A 1-for-10 reverse stock split in 2023 provided only temporary relief, as AMC returned to its penny-stock status.

Moreover, AMC rival Cinemark seems to be outperforming AMC. Although AMC remains the No. 1 chain in the U.S., Cinemark has earned a net income of $56 million in the first two quarters of 2025. In comparison, AMC has lost $207 million over the same period.

Furthermore, AMC does not typically own its real estate. That means that long-term leases support its No. 1 status. It will take time and money to exit the money-losing leases, and since it is not performing as well as a key peer, it could lose its No. 1 position in the process.

Investors should also consider the state of the stock. Although the lack of profitability leaves it without a P/E ratio, the aforementioned drop in the stock price has taken its price-to-sales (P/S) ratio down to 0.2.

That valuation allows investors to buy AMC at a massive discount. Nonetheless, it also highlights the risks the movie chain faces as it seeks to return to a solid financial footing.

Should investors buy AMC stock before earnings?

Given the state of AMC Entertainment, only risk-tolerant investors looking for a speculative play should buy the stock before earnings.

Indeed, the low P/S ratio and No. 1 market position should play into investors' hands amid upcoming releases.

However, AMC likely faces a long journey back to profitability, a feat already achieved by rival Cinemark. Additionally, the most anticipated releases are sequels, meaning viewers are not coming to theaters for original material. This could bode poorly for an industry competing with more forms of entertainment.

Admittedly, the industry is unlikely to die, and AMC could make a dramatic comeback given the rock-bottom valuation. Nonetheless, considering its ongoing losses and the industry's long-term challenges, most investors should steer clear of this stock.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.