Today is Wednesday, May 18, 2022.
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AMC’s Newest Investment
Shares of AMC Entertainment (NYSE: AMC) jumped 3.64% in after-hours trading on Tuesday after the movie theater operator revealed that it invested in a cinema-related company.
Details: AMC disclosed that it bought a 6.8% stake in National CineMedia (Nasdaq: NCMI), a cinema advertising company, according to a filing with the SEC. In total, the company bought 5.9 million units of stock in the company.
Immediate Bounce: Shares of National CineMedia jumped 31.03% in after-hours trading.
History: AMC, which benefited from the meme stock mania of 2021, has tried to reinvent itself. The pandemic crushed the movie theater industry. AMC has diversified its revenue by making all sorts of investments, including an investment in a gold mining business. Obviously, investing in a cinema advertising company makes more sense for AMC.
Background: National CineMedia reported earnings last week. The company reported a loss of 20 cents per share, which was below estimates, and revenue of $35.9 million, which was better than expected.
Numbers: Both stocks have seen better days. In the past six months, National CineMedia has dropped 58% and AMC has dropped 68%.
Final Thoughts: Oddly enough, National CineMedia does offer a small dividend to investors.
Notable Earnings Today: Lowe's (NYSE: LOW), ZIM Integrated Shipping Services (NYSE: ZIM), Cisco Systems (Nasdaq: CSCO), Target (NYSE: TGT), Sociedad Quimica y Minera De Chile (NYSE: SQM), Synopsys (Nasdaq: SNPS), TJX (NYSE: TJX), Bath & Body Works (NYSE: BBWI), Analog Devices (Nasdaq: ADI), GDS Holdings (Nasdaq: GDS), Arcos Dorados Holdings (NYSE: ARCO), Copart (Nasdaq: CPRT), IBEX (Nasdaq: IBEX), Dynatrace (NYSE: DT), Hawkins (Nasdaq: HWKN), Triumph Group (NYSE: TGI), Ci&T (NYSE: CINT), DouYu International Holding (Nasdaq: DOYU), Shoe Carnival (Nasdaq: SCVL).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing starts (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Fear and Greed Index Hits Lowest Level in Two Years
The cryptocurrency Fear and Greed Index hit an 8 on Tuesday, its lowest level since March 2020.
Background: The cryptocurrency Fear and Greed Index is a metric compiled daily by Alternative.me to understand the current emotional state of the market. Trading volume, social media sentiment, and other data influence the index.
Details: The index operates on a scale of 1-100, with 1 representing extreme fear and 100 representing extreme greed.
Numbers: It’s a bad time for cryptocurrency. Bitcoin’s price is around $30,000, its lowest price in a year. Other altcoins are suffering too.
Final Thoughts: The last time the index hit this level was due to the start of the pandemic.
The Disadvantages of Utility Stocks
While utility stocks can be a solid defensive play, they are far from perfect.
Keeping it Slow: Yes, utility stock prices can increase, but that growth is often slower than in other sectors.
Losing: Don’t be fooled by recent gains. Utilities, similar to stocks in other sectors, could be subject to losses.
Final Thoughts: It is important to consider the long-term viability of utility stocks, including these disadvantages, before jumping in.
Trends to Watch
Not Chill: Netflix is laying off 150 employees and cutting dozens from its Tudum fansite (The Verge)
The Question on Everyone’s Mind: What the Hell Just Happened With Crypto? (Reason)
Hitting the Walmart: Walmart Flashes a Warning Sign to the Entire Consumer Economy (Bloomberg)
Denied: JPMorgan Shareholders Reject Jamie Dimon’s $50 Million Bonus (The Wall Street Journal)
In Consumers We Trust: Retail spending increased 0.9% in April, boosted by demand and inflation (CNBC)
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