Wall Street Has Written Off AMC Stock. Here's Why That's a Mistake.

Have you ever walked out of a movie theater during a screening, only to realize that you missed a pretty good flick? A lot of former AMC Entertainment (NYSE: AMC) investors and speculators probably feel that way.

Shares of the country's leading multiplex operator popped 12% on Monday, a day when most portfolios took on water. The surprising pop this week did something else, pushing the stock to more than double so far this year. In a year when two of the biggest theatrical releases in the horror genre came from low-budget movies made by 20-something YouTubers, it's only fitting that AMC is the unexpected market darling of 2026.

It may not seem sustainable, and AMC still has one of the ugliest five-year charts on the market. But dismissing AMC's present and future based on its brutal portfolio-mauling past could be a lost opportunity. You were right when you thought that AMC's surge in 2021 wasn't sustainable as the fundamentals were deteriorating. Why do you think the bears are right now when the fundamentals are on the rise?

Image source: Getty Images.

Reel intentions

AMC stock is now 111% higher in 2026. Yes, it's also still down 99.1% over the last five years. I'm not here to debate the wisdom of buying the stock in 2021. I'm here to discuss the turnaround that so many investors continue to doubt.

Folks are coming back to the silver screen. Domestic ticket sales have topped $7.7 billion this year, 20% ahead of where they were a year ago. U.S. theaters will top $10 billion in box office receipts for the first time since the pandemic, a mark they reached for 11 consecutive years through 2019.

The news gets even better once you walk into your local multiplex. AMC and its peers have gotten better about boosting their food and beverage offerings. The concessions stand is now brimming with a wider variety of culinary offerings and big-ticket collectibles themed to current releases. This is big because it is where exhibitors rake in high-margin revenue. Ticket sales accounted for just 56% of revenue in AMC's latest quarter.

It's the 2026 double that few saw coming

There are 90 stocks larger than AMC that have more than doubled this year. They are mostly tech, energy, and biotech plays. There aren't many consumer stocks outside of AMC that have gone on market-thumping runs, but after years of suppressed potential and admitted mismanagement, the country's top dog in silver screens is finally golden to the point where even CEO Adam Aron can't fumble the opportunity.

It's been just a couple of weeks since I became an AMC shareholder, something I never thought would happen. There comes a point where a punchline learns to pack a punch. Fighting the future based on the past can be a mistake. After seeing smaller theater chains turn profitable on a full-year basis, AMC is now closing in on that moment.

It won't happen this year. It may not even happen in 2027, even though analysts have slashed their AMC loss projections in half since the last financial update. Wall Street pros do see the bottom line fading to black come 2028, but don't be surprised if it happens sooner. It's been a year of pleasant surprises for AMC, and the year isn't over yet.

Rick Munarriz has positions in AMC Entertainment. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.