Latest news with #MichaelPachter
Yahoo
a day ago
- Business
- Yahoo
Why AMC Stock Is Soaring Today
Wedbush boosted its rating on AMC Entertainment stock from neutral to outperform and raised its price target. The firm's analyst was impressed with AMC's recent moves to improve cash flow and reduce debt. Despite improved analyst sentiment, the company's negative equity, years of unprofitability, and weak theater attendance make its stock a risky pick. 10 stocks we like better than AMC Entertainment › Shares of AMC Entertainment (NYSE: AMC) are jumping on Friday, up 10.6% to $3.32 as of 2:05 p.m. ET. At that point in the session, the S&P 500 was off by about 0.2% and the Nasdaq Composite was flat. A ratings upgrade from Wedbush analyst Michael Pachter appeared to be the driving force behind the movie theater chain's stock move. On Friday morning, Wedbush's Pachter upgraded AMC shares from neutral to outperform and raised his 12-month price target on the stock from $3 to $4. The analyst cited an upcoming film release schedule that's more consistent than what we've seen recently. He also pointed to AMC's lead in premium screens in North America as an advantage that could help it capture more market share, as well as the company's expansion plans in the U.K. and the European Union. Pachter was also impressed with AMC's cost-cutting efforts, which have included closing underperforming theaters., That boosted its bottom line, allowing it to reduce its debt and eliminating its need to issue additional shares in the near future. AMC stock has a lot of loyal fans who, despite the company's troubles, see a bright future for it. Their support has turned it into a meme stock. But I'm not convinced by their bullish views. The company's balance sheet is in rough shape with negative equity approaching $2 billion, and it has been years since it has operated in the black. I'm a movie lover, and I wish I could say differently, but consumer trends are not working in AMC's favor. In 2024, roughly 760 million movie tickets were sold in the U.S., down from 1.2 billion the year before the pandemic hit. That in turn was down from the late 1990s through the early 2000s, when 1.4 billion or more tickets were sold during most years. Before you buy stock in AMC Entertainment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AMC Entertainment wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Johnny Rice 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. Why AMC Stock Is Soaring Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
12-06-2025
- Business
- Time of India
GameStop shares plunge as company eyes Bitcoin with new bond offering — investors left scratching heads
GameStop shares fell sharply on Thursday after the company announced a plan to raise $1.75 billion by selling convertible bonds. The money from these bonds will be used for general business purposes, including investments and possible acquisitions, as per reports. Part of GameStop's investment plan is to add cryptocurrencies like Bitcoin to its assets. Last month, GameStop already bought 4,710 bitcoins, worth more than $500 million. After the bond plan was announced, GameStop's stock dropped more than 15% on Thursday, June 12, according to the report by CNBC. GameStop is copying software company MicroStrategy, which bought billions of dollars of bitcoin and is now the biggest corporate bitcoin holder. MicroStrategy's stock rose fast but also went through big ups and downs because of its bitcoin bets. MicroStrategy used similar methods like convertible debt to fund its bitcoin buys. GameStop's CEO, Ryan Cohen, said they want to buy bitcoin because it might protect the company from big economic risks. Bitcoin has a fixed supply and is decentralized, which makes it a possible hedge against some problems, as stated in the report by CNBC. GameStop's sales drop GameStop's business is still mainly a physical store retailer, but they reported lower sales for the first quarter recently. Their revenue dropped 17% compared to last year, falling to $732.4 million. After the earnings report, the stock fell 5% on Wednesday, June 11, before the bond news. Live Events Investors and Wall Street are unsure if GameStop can do as well as MicroStrategy with bitcoin investments. Michael Pachter, a Wedbush analyst, said GameStop's stock is mostly driven by 'greater fools', as mentioned in the report by CNBC. Pachter thinks the bitcoin buying plan does not make much sense because the company's stock is already priced at 2.4 times its cash value. He doubts that turning more cash into bitcoin probably won't make the stock price go up even more, as per reports. FAQs Q1. Why did GameStop shares fall recently? Shares fell because investors are unsure about the company's plan to buy more bitcoin using bond money. Q2. What is GameStop's new investment plan? GameStop wants to raise money by selling bonds and use it partly to buy more bitcoin. Economic Times WhatsApp channel )
Yahoo
12-06-2025
- Business
- Yahoo
Why Shares of GameStop Are Tanking Today
GameStop announced the company is raising more capital through convertible notes. The company appears to be following MicroStrategy with plans to start purchasing Bitcoin. The meme stock has struggled to find direction in its core video game business. 10 stocks we like better than GameStop › Shares of the video game retailer GameStop (NYSE: GME) had tanked roughly 19%, as of 10:18 a.m. ET today. The company announced plans to issue $1.75 billion in convertible notes for "general corporate purposes, including making investments in a manner consistent with GameStop's Investment Policy and potential acquisitions." While GameStop in its press release did not specifically say that it would use the proceeds of the offering to buy more Bitcoin, the world's largest cryptocurrency, many suspect this is the plan and GameStop's investment policy now includes purchasing more Bitcoin. The company earlier this year raised capital through convertible notes. In late May, GameStop then purchased over $500 million worth of Bitcoin. GameStop appears to be following in the footsteps of MicroStrategy, now doing business as Strategy. In 2020, MicroStrategy began purchasing tons of Bitcoin and the stock has generated tremendous returns since. Strategy now regularly taps the capital markets to raise funding that it can use to then buy more Bitcoin. GameStop was one of the original meme stocks in the craze that captivated markets in 2020 and 2021. However, the company's core business is still struggling. In the first quarter of 2025, GameStop reported nearly $45 million in profits, a significant year-over-year improvement, but revenue plunged 17%. The company still doesn't seem to have a sustainable long-term strategy, and as Wedbush analyst Michael Pachter recently said in a research note, the stock still trades at a higher premium to its cash than MicroStrategy trades to its Bitcoin holdings. Buying more Bitcoin may work if the price of Bitcoin keeps moving higher, but it also could lead to greater risk and volatility. Personally, if you like Bitcoin, I'd recommend just buying the asset itself and avoiding GameStop. Before you buy stock in GameStop, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GameStop wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Why Shares of GameStop Are Tanking Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
11-06-2025
- Business
- CNBC
GameStop share valuation is still just relying on 'greater fools' theory, says Wedbush
GameStop 's share valuation is dependent on speculation in overvalued assets because the company's turnaround strategy for its underlying video game business remains murky, according to Wedbush analyst Michael Pachter. "Despite a complete lack of a clear strategy, GameStop has consistently capitalized on the existence of 'greater fools' willing to pay more than twice its asset value for its shares — and so far, they've been correct," Pachter said in a note out Wednesday to clients. The brick-and-mortar retailer reported a decline in first-quarter revenue on Tuesday as demand for online gaming rose. GameStop recently bought 4,710 bitcoins , worth more than half a billion dollars, as the firm began a crypto purchasing plan similar to one made famous by MicroStrategy . GME YTD mountain GameStop shares in 2025. However, the Wedbush analyst believes the bitcoin buying strategy makes little sense from a fundamental business standpoint. "It is difficult to understand why any investor would be willing to pay more than 2x cash value for the possibility of GameStop converting more of its cash into Bitcoin, especially since these investors could invest in Bitcoin or a Bitcoin ETF themselves," Pachter said. "The company already trades at 2.4x cash, making it unlikely that converting more cash to crypto will drive an even greater premium." Gamestop CEO Ryan Cohen recently said GameStop's decision to buy bitcoin is driven by macroeconomic concerns, saying the digital coin, with its fixed supply and decentralized nature, could serve as protection against risks. The analyst reiterated Wedbush's underperform rating on GameStop and a 12-month price target of $13.50, or 55% below Tuesday's close at $30.15. Pachter said his target comprises about $12.50 a share in cash and a going-concern value of $1 a share. "GME shares trade at a level that overlooks the many challenges ahead," he said.
Bloomberg
10-06-2025
- Business
- Bloomberg
Wedbush's Pachter Weighs In on the Video Game Industry
Michael Pachter, Managing Director, Equity Research, Wedbush Securities, speaks with Alix Steel and Romaine Bostick about the AI in the video game industry. (Source: Bloomberg)
