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AMC Threat As Regal Shuts Locations – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<p>Regal Cinemas went bankrupt and has started to close locations&period; It is the second largest company in the industry trailing only AMC Entertainment&comma; which has its own troubles&period; The Royal decision is an awful sign which gives proof to the fact that what COVID-19 started&comma; streaming media will finish&period;<&sol;p>&NewLine;<p>COVID-19 caused every movie theater in the country to shut down&period; Before this&comma; there was already concern that theater traffic was at risk because of streaming companies led by Amazon and Netflix&period; Netflix recently announced adding millions of subscribers a month&comma; as did another streaming leader–Disney&period; The streaming juggernaut is not slowing&period;<&sol;p>&NewLine;<p>AMC’s stock price has fluctuated recently because it has become a target for speculative investors&period; Perhaps the best way to view the shares is the price at which they bottomed in the last year&period; This was &dollar;3&period;84 in late December against a 52-week high of just over &dollar;29&period; AMC’s financials support the lower price and not the higher one&period;<&sol;p>&NewLine;<p>At the higher prices&comma; AMC was able to bolster its balance sheet&period; But the investors who put money in did so at great risk&period; Mediocre ticket sales have caused the value of many of these investments to crater&period; The drop has also made it unlikely AMC can raise more money&period; The Wall Street Journal recently pointed out that AMC was in worsening financial trouble&period;<&sol;p>&NewLine;<p>AMC has another long-term challenge&period; A decade ago&comma; ticket sales were driven by movies from just a few studios&period; An occasional blockbuster pushed revenue to levels that yielded solid profits&period; Today&comma; many movies are produced by well-financed streaming media companies&period; They go direct to consumers via streaming and never show up in theaters&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;section>&NewLine;<p>AMC’s headwinds are probably too strong to overcome&comma; The Royal Cinemas decision is a bad omen&period;<&sol;p>&NewLine;<p>These are the biggest movies people can’t wait to see in 2023&period;<&sol;p>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

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