Are you interested in AMC shares and looking to add them to your investment portfolio? Well, that’s a brilliant move, as AMC shares have proven to be a good investment for investors over the years. The company’s stock has soared in recent times and has continued to appeal to more and more people.
Today’s guide will show you how you can buy AMC Entertainment shares. Also, we will give you a brief overview of the company and why investing in AMC is a good decision. Let’s start with a quick overview of the company.
A brief overview of AMC
AMC Entertainment Holding Inc is a leading American cinema chain. It is one of the largest in the world. AMC Entertainment Holdings launched its operation in the early 1920s and held its initial public offering in 1983. With more and more people buying into the company’s vision, AMC kicked off its global expansion to cater to the entertainment needs of its customers. At its peak, AMC Entertainment holdings had over 300 cinemas in Europe alone and another 600 in the US.
Although AMC has been on a rollercoaster ride, it has continued to appeal to retail investors, especially as the company’s stock is heavily promoted on websites like StockTwits and Reddit. Because of the buzz generated by AMC, it is now one of the most classic meme stocks, with the company leaning into that identity. AMC has gone above and beyond to win shareholders over, with the company offering free popcorn in many of its cinemas across Europe and the US.
Being one of the best meme stocks out there, AMC stock has enjoyed a lot of volatility in recent times. Because of its designation as a meme stock, the company’s share is known to rise rapidly within a short period. Though this may sound appealing, it’s important to add that the company’s shares can also fall sharply. Knowing this will help you prepare to deal with the risks, just in case the market doesn’t go your way.
How has AMC performed?
Before you add any share or stock to your investment portfolio, it’s important to take some time to consider how that share or stock has performed in recent years. So when thinking about investing in AMC Entertainment Holdings, we want you to take that approach.
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There are two sides to AMC that makes it such a brilliant investment. On the first hand, it is the company’s underlying business approach. On the flip side, the company has benefited tremendously from the overwhelming interest in meme stocks.
That said, the company’s meme stock performance has been far better. AMC share soared by over 500% in 2021, reaching an all-time high of $60 in June of the same year. Even after the hype around meme stock had faded, AMC stock has occasionally seen more than 30% spikes, making its shares even more appealing to retail investors.
While AMC’s online popularity signals that the company’s shares now have a floor price, it has a long way to go to overcome the many forces against it. For instance, Cinemas have constantly had to deal with the threat of extinction, especially with the rise of streaming platforms like Netflix. Also, the pandemic dealt a huge blow to AMC services, as global lockdown measures meant that people couldn’t visit the cinema.
Is now a good time to buy AMC shares?
To be honest, it all depends on how volatile you expect your investment to be. That said, AMC is known for its wild price swings. This is among the reasons many people put their money into AMC shares. The opportunity to make a quick box has made AMC quite appealing to retail investors. Unfortunately, because of the wild price swings associated with AMC stock, it’s almost impossible to predict its direction.
However, if you love the thrill of the ride instead of a secure long-term investment, you’ll love how AMC swings.
As per the broader outlook, people returning back to the cinema after a protracted period of staying at home has boosted the company’s stock. While the threat from streaming service providers persists, the return to cinema-exclusive blockbuster releases has increased the company’s stock in recent times.
If you see AMC shares as a long-term investment, it’s worth considering why sellers will be interested in shorting AMC shares. On the other hand, short-term traders must also ensure they have a complete grasp of volatility and trading indicators. This will help them benefit from the big swing in price associated with AMC shares.
Again, you must stay updated with the latest news and analysis on AMC stocks and shares. This will help you make an informed decision about whether AMC stock is a good investment.
Buy AMC shares online: How to go about it
Having given you a brief overview of the company and how it has performed in recent times. It’s time we go over how you can buy AMC shares online. Let’s dive into the specifics, shall we?
Step 1: Choose a good online broker
Before you can add AMC stock to your investment portfolio, you need to first find a reliable broker. Thankfully, this isn’t hard as many amazing brokerage companies, including Plus500, AvaTrade, Admiral Markets, Fidelity, eToro, and more, are doing a brilliant job.
But before choosing an online broker to do business with, you need to consider several factors, including broker’s fees, accessible markets, instruments listed, trading platform, and how easy it is to sign up for an account. Also, you’ll need to consider the broker’s approach toward ensuring the security of investors’ funds.
Step 2: Open a brokerage account
After choosing a broker that ticks all your boxes, you need to take things further by signing up for an account. The process is super easy and almost similar to opening a regular bank account. With a broker like eToro, the sign-up process is quick and hassle-free. Opening an account with eToro is as quick as signing up for a new Gmail account. Some brokers take a couple of days to do a background check on you. This tends to delay the account opening process.
Step 3: Fund your trading account
Before you can buy AMC stock, you’ll need to have some money in your trading account. So once your trading account is approved, you’ll need to fund it. Just like opening an account, funding your trading account is quick. Plus, you have multiple payment options, including bank transfer, credit/debit card, e-payment options, and more you can leverage fund your account. A broker like eToro even supports PayPal payment, making it easy for investors to fund their accounts.
Step 4: Buy the AMC share
After successfully funding your trading account, you can now proceed to buy AMC shares. And like every other process we have outlined, this one is also pretty easy. To buy AMC stock, simply log into your brokerage account and search for AMC shares. Once that page pops up, insert the number of shares you want to purchase and hit the buy button. This action should initiate the buy process
Note: When buying AMC shares, you have the option to choose different order types. If you go for the market buy option, which many people opt for, your trade will be executed at the current market price. On the flip side, a limit order allows you to specify exactly at what price you want your trade to be executed.
The only caveat with a limit order is that the market may not reach the price you put in place.
Step 5: Always review your AMC position
While investing in AMC shares is a brilliant move, you need to take things up a notch after adding AMC shares to your portfolio. To be on top of your game, we encourage investors to regularly monitor their investments. What we simply mean here is following your investment strategy. For instance, if you plan on holding AMC shares for the long term, it would make sense to keep up with the company’s annual meeting and follow all news updates and information about the company.
On the flip side, if you have a shorter-term outlook, you want to keep up with the shares’ performance. The minute you see that the price has appreciated to a level you want, you can sell some of your shares.
If you don’t have the time to constantly monitor your shares, you can simply set a sell limit. Typically, when the price reaches this point, your broker automatically executes the trade.
How to buy AMC stock on eToro
Now that you know how to invest in AMC stock, we want to use this opportunity to show you how you can buy AMC shares on an exchange like eToro. And just so you know, the process is pretty straightforward and only takes a couple of minutes. Here, check out how anyone can buy AMC stock on eToro.
Create an eToro account
If you don’t already have an account with eToro, you’d have to open one to be able to buy AMC stock. As we reiterated earlier, the process is simple. If you already have an account with eToro, you can simply log in.
During the signup process, you’ll be required to provide basic information like name, email address, and phone number. Nonetheless, to fund your eToro trading account, you’ll need to provide additional info so the broker can verify your identity.
Complete your eToro profile
If you’re opening your account for the first time on eToro, you’d be required to complete your profile. For customers who have an existing account, you can skip this process. Completing your profile only takes a couple of minutes and is a requirement by most brokers as per AML and CTF regulations. With your profile now complete, you can proceed to other aspects.
Fund your trading account
After completing your eToro profile, you’ll need to fund your trading account to be able to buy some AMC stocks. We love eToro because they have a low minimum deposit requirement. To start trading on the eToro platform, you’ll need to make a minimum deposit of $200, or its equivalent in other currencies.
And just to add, eToro supports up to 8 popular deposit methods, including PayPal, wire transfer, UnionPay, credit or debit cards, Neteller, Skrill, and WebMoney. So, funding your account is super easy.
Tip: If you’re not fully convinced or you don’t feel ready to invest real money, you can test the waters with eToro’s virtual portfolio feature. This option lets you trade your favorite stocks without putting in real money. And as you gain experience and feel more comfortable, you can switch to a real portfolio.
Buy AMC stock
With your eToro account now funded, you can proceed to buy AMC stocks. While eToro lets you buy AMC shares seamlessly, you can also decide to short it. Keep in mind that the direction you decide to take is based on current market sentiments or direction. Here is how you can buy AMC stock on eToro.
Navigate to eToro’s unique search bar, which sits at the top of the screen. Enter the ticker name associated with AMC stocks: AMC. Hit the trade now button to place your order. A new window should pop up, allowing you to make changes to different parameters. It’s that easy.
