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AMC stock has declined by about 1/3 since starting A-List, recently hitting an all-time low. The market would seem to disagree that AMC is making smart decision
by listenallyall 7y ago
AMC stock has declined by about 1/3 since starting A-List, recently hitting an all-time low. The market would seem to disagree that AMC is making smart decisions. Sometimes a company and its CEO makes decisions in spite of the data, due to pride, momentum, false beliefs, inability to use the data correctly, dozens of other reasons. Further, the actual "after" data is pretty thin, given the program's limited history.
- scarface74 7y agoThe stock market is also rewarding Uber and it doesn’t have a clear road to profitability at all. The market is a horrible proxy for the soundness of a business plan.
- listenallyall 7y agoFor new, speculative, disrupters, perhaps. For old, mature, well-understood industries? Your statement is false. The market had every right to punish AMC (a real company BTW, not a "business plan"), which earned just $1 for every $54 in revenue in 2018, and which also nearly doubled revenue over 2015, with less than a 10% increase in net income to show for it.
- scarface74 7y agoYes you’re right the market is totally rational..