Cinemark up, AMC down. Buy which?

The movie theater industry has been hit hard by the COVID-19 pandemic, with many theaters closing their doors and struggling to stay afloat. However, as the world begins to reopen, some theater chains are starting to see a rebound in their stock prices. Two of the biggest players in the industry, Cinemark and AMC, have had very different experiences in the past year. So, which one should you buy?

Cinemark, which operates over 500 theaters in the United States and Latin America, has seen its stock price rise by over 50% in the past year. The company has been able to weather the storm of the pandemic by cutting costs and negotiating with landlords to reduce rent payments. Additionally, Cinemark has been able to generate revenue through its private watch parties, where customers can rent out an entire theater for themselves and their friends.

On the other hand, AMC, which operates over 900 theaters in the United States and Europe, has seen its stock price plummet by over 40% in the past year. The company has been hit hard by the pandemic, with many of its theaters closed for months at a time. Additionally, AMC has been struggling with a heavy debt load, which has made it difficult for the company to invest in new technology and compete with other theater chains.

So, which one should you buy? While Cinemark has certainly had a better year than AMC, it’s important to remember that the movie theater industry is still facing a lot of uncertainty. The rise of streaming services like Netflix and Disney+ has made it more difficult for theaters to attract customers, and it’s unclear how quickly people will return to theaters once the pandemic is over.

That being said, if you’re looking to invest in the movie theater industry, Cinemark is probably the safer bet. The company has a strong balance sheet and has been able to adapt to the challenges of the pandemic. Additionally, Cinemark’s private watch parties have been a hit with customers, and the company has plans to expand this offering in the future.

Overall, investing in the movie theater industry is a risky proposition, but if you’re looking to take the plunge, Cinemark is probably the better choice. However, it’s important to remember that this is a long-term investment, and there are no guarantees in the stock market.