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AMC stock may sink after Lightyear falls short

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AMC stock may sink after Lightyear falls short

  • Shareholders voted against CEO Adam Aron’s compensation last week.
  • Despite this, AMC stock rallied over 6.3% to close at $12.53 on Friday.
  • The market feels besieged by last week’s 75 basis point interest rate hike at the Fed.

AMC stock zoomed higher on Friday and may benefit further once markets open on Tuesday after Monday’s Juneteenth holiday. The weekend box office receipts were decent but not better than the previous weekend. However, summer blockbusters like Jurassic World Dominion and the new release Lightyear helped bring in the crowds. Overall, the June 17 to 19 weekend brought in $163 million in domestic box office revenue, but there are no specifics on how much of that came from AMC cinemas.

Also read: Amazon Stock Deep Dive: AMZN price target at $106 with near-term risks offset by long-term growth

Pixar’s Lightyear falls below opening weekend expectations

Pixar’s Lightyear was the biggest of the 50 movies released this weekend on the silver screen. The animated feature is a spin-off of the Toy Story franchise and focuses on the Buzz Lightyear character. Originally voiced by Tim Allen, the new flick has the character voiced by Chris Evans. Lightyear brought in $51 million domestically in its first weekend, second only to Jurassic World Dominion at $58.7 million. Additionally, it brought in another $34.6 million abroad.

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Buzz Lightyear movie

Typically, animated features last a while at the box office, so AMC should expect these figures to keep growing for the next few weeks. This take was a bit below expectations, however, which initially had given Lightyear a forecast between $90 million and $120 million for its opening weekend. At $85.6 million, the new Toy Story movie fell below the low end of the forecast. Thanks Ben Shapiro!

AMC stock still might react well to decent turnout

AMC Entertainment made no announcement to showcase weekend turnout numbers. At $163 million in revenue, according to data from BoxOfficeMojo.com, the take for the cinema company was decent, but it did not compare to the $203 million in domestic receipts from the third weekend in June 2019. Most analysts are comparing 2022 figures to 2019 to get around the pandemic’s major hit to the business. This past weekend only had about half of the releases of the same weekend in 2019, so they are somewhat hard to compare.

Still, Lightyear‘s opening weekend was a bright spot, but it will not be able to take the baton from Jurassic World Dominion, which has already become the fourth-biggest Hollywood flick of the year, grossing $622 million worldwide. That puts it behind Doctor Strange in the Multiverse of Madness at $942 million, Top Gun: Maverick at $885 million, and The Batman at $770 million.

AMC theater

AMC investors have a number of other new films they can count on, besides the success of Lightyear. There is the Elvis release that debuts this coming weekend on June 24; Minions: Rise of Gru on July 1; and Thor: Love & Thunder on July 8. If any of these feature releases can do a number, then AMC might have a decent quarter to talk about on August 8. The movie business is quite unequal. The vast majority of earnings come from 10 or fewer blockbusters throughout the year, and the summer is the most important season for a company like AMC.

Adam Aron loses vote on pay package

AMC CEO Adam Aron has also been front and center of investor disappointment in AMC stock. Last week’s vote against Aron‘s pay package added to that. Shareholders at the meeting on June 16 voted against the executive compensation package that would have given the charismatic CEO Aron $19 million in pay. This is a similar amount, most of which is stock options, that the AMC boss received in 2021.

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This year, however, Institutional Shareholder Services and Glass Lewis – major proxy advisers – publically told investors to shun the compensation package. Investors listened, but the vote was only advice. The board still has the right to grant whatever compensation they decide is necessary. Aron has received accolades for steering AMC Entertainment through the pandemic, when a lesser CEO may have let the cinema chain go bankrupt.

“A total of 268,775,910 out of 516,820,595 eligible shares of the Company’s common stock were present in person or represented by proxy at the Annual Meeting. For the non-routine matters of electing directors and approving executive compensation on an advisory basis, 144,963,266 shares were voted after excluding broker non-votes,” the company wrote in a filing with the Securities & Exchange Commission.

AMC vs GME stock performance

AMC stock owners may not have approved the executive compensation for the reason that AMC shares are down 79% over the past year and 53% year-to-date. Over the past month, the meme stock is up 1.3%, so maybe the cinema chain has finally found a bottom. Holding $12 now seems to be the focus for traders. The low of $9.70 on May 12 is yet to be broken, so there is hope that AMC stock will continue higher.

GameStop (GME) has failed to reflect on its stock price negative news of late. GME stock rallied 7.5% on Friday to close above $135. As the original meme stock, GME has held up somewhat better than AMC over the past year. GME share price has only lost a little less than 40% over the past twelve months and just 11.6% year to date. News arrived last week that spending on video game hardware, content, and accessories had dropped 19% in May over the prior-year period. This was surprising because GameStop reported growing revenue in its most recent earnings call.

AMC stock forecast

AMC stock does not look great long-term. The short-term chart does have some interesting features. First, since early May, AMC share price has been ascending somewhat with each new low. It appears to be riding a support line that has been rising moderately from $10 to $12. This is optimistic for bulls in that it shows there is enough support at these prices.

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The 9-day crossed above the 21-day moving average on June 3. In the past few sessions, though it has dropped back to fall right on top of the 21-day moving average though. The Moving Average Convergence Divergence (MACD) is still trending higher toward the zero threshold, but the blue MACD line is barely above the signal line at this point.

AMC stock needs to receive some sort of boost to deliver above resistance from the last swing high at $16. The short-term moving averages are right on top of the current price action, so they will not supply resistance in the event of a rally. Some resistance also sits at $14. Above $16 there is prominent resistance from a supply zone between $19 to $21 from February and March.

AMC stock price chart

AMC chart, daily


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Binance CEO Changpeng Zhao on crypto skeptics: ‘no need to ignore them’

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Binance CEO Changpeng Zhao on crypto skeptics: ‘no need to ignore them’

Bitcoin has been called just about anything and virtually “nothing” by skeptics over the years.

If you did a little checking, you would note that perhaps the most bile towards the revolutionary technology maybe coming from what Binance CEO Changpeng Zhao calls “experienced and respected crypto skeptics.”

So how does the crypto market “address” this group of influential personalities and experts?

In his latest blog published on Friday, Zhao says “walk a mile in their shoes”, get to understand where their perspective has formed. Importantly, why take everything to heart when this is all normal and expected behavior.

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Being protective and defensive doesn’t always come from a maligned place. Good-faith actors want to protect their users and community. Central banks, regulators, and financiers, in most cases, want to avoid risk and provide security. So when people ask me how I deal with trusted, respected professionals admonishing crypto, I try to walk a mile in their shoes,” he wrote.

Don’t take ‘everything to heart’, CZ says

You have heard it all, you are engaging some of them – and clearly, they seem not to understand what crypto is. Instead of ‘ignoring’ their criticism, try to understand their views from the perspective of “their experience and position.”

This is how you end up extracting value from whatever criticism they advance.   And once you do that?

There’s no need to ignore them or take everything to heart once you’ve dug a little bit deeper,” Zhao advises.

There is a lot one can take from the Binance chief’s take on crypto critics and how to go about getting to know that what they say comes from a certain point of view.

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In a nutshell, blockchain technology is disruptive technology – and like any other new technology that actually disrupts – it’s more likely than not to be met with some skepticism from those who might feel threatened by it.

You can read all of CZ’s argument on the Binance blog.

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BIFI Price Prediction as Beefy Finance Crawls Back

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BIFI Price Prediction as Beefy Finance Crawls Back

The BIFI price has crawled back as yield-optimizing blockchain projects bounce back. Beefy Finance’s token is trading at $0.0082, which is a few points above the intraday low of $0.0077. The current price is about 92% below the highest level in 2021. As a result, its total market cap has crashed to more than $37 million.

Yield optimizer token jumps

Beefy Finance is a leading player in the decentralized finance (DeFi) industry. Its business model is that it offers a multi-chain yield optimizer that allows users to earn compound interest on their crypto holdings. 

By comparing yields of various platforms, Beefy then selects the coin with the biggest yield. It simply maximizes returns from various liquidity pools and automated market-making projects. Beefy is compatible with the leading blockchains like Fantom, BNB Chain, Polygon, Avalanche, and Arbitrum among others.

According to DeFi Llama, the total value locked in Beefy Finance has been in a downward trend. It has crashed from an all-time high of over $1.22 billion to the current $259 million. This decline is in line with that of other DeFi protocols.

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BIFI is the governance token for Beefy Finance. The BIFI token has jumped in the past few hours as other yield optimizers rebound. For example, YFII price has jumped by more than 300% in the past two days. Similarly, Yearn Finance has also jumped. Other DeFi tokens like Uniswap and AAVE have also rallied.

This performance is mostly because of the overall rebound of cryptocurrencies and US equities. The Dow Jones index has rallied by more than 3%. Another reason is that investors are simply buying the dip after the coin crashed hard in the past few months.

BIFI price prediction

The four-hour chart shows that the BIFI price has been in a strong bearish trend in the past few months. The sell-off accelerated after the coin moved below the important support level at $0.0133, which was the lowest level in May. It has also crashed below the 25-day and 50-day moving averages.

Therefore, Beefy Finance price will likely continue falling as bears target the next key support level at $0.0070. A move above the resistance at $0.01 will invalidate the bearish view.

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Should you buy Origin Protocol as it maintains above the oversold bottom?

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Should you buy Origin Protocol as it maintains above the oversold bottom?

  • Origin Protocol aims to enhance NFT and DeFi adoption

  • Origin Protocol’s OGN token hit an all-time high of $3.45 in March 2021

  • The token is currently consolidating and has met resistance

As non-fungible tokens gained momentum in 2021, Origin protocol (OGN/USD) was expected to grow. Its native token was trading at a mere $0.13 at the start of 2021, rising to a high of $3.45 the same year. At the current trading of $0.25, OGN is a shadow of itself from last year’s highs. Continued bearish weakness in crypto is contributing to the downside.

Origin Protocol is a blockchain platform that seeks to enhance mainstream adoption of NFTs and DeFi. The protocol was founded in 2017 with the objective of enabling commerce on blockchains. OGN is the governance and utility token powering the Origin Protocol. The digital asset allows holders to vote on proposals governing the underlying protocol. The number of circulating OGN tokens is 388,570,732.54 from a total supply of 1,000,000,000 and an equivalent hard cap. We believe investors should monitor OGN based on key technical aspects.

OGN consolidates close to an oversold bottom

Source: Tradingview

Technically, OGN is trading at a $0.26 resistance level. The token entered the oversold zone when it hit the $0.19 support level, with an RSI reading of 24. The RSI is currently at 51, showing that the token is escaping the oversold bottom. However, it has hit the resistance zone.

From the above technical perspective, OGN remains an ideal investment in the short term. We are yet to find a lasting bullish momentum as the token remains in consolidation mode. The broader cryptocurrency market remains largely bearish, and the OGN could remain subdued. An ideal buy entry on OGN is on a retracement to the $0.19 support level or a break above the $0.26 resistance. In the meantime, investors can capitalize on the short-term opportunities within the consolidation zone.

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Summary 

Origin Protocol holds a place in the NFT and DeFi space. Its native token is yet to recover after a crypto crash. Investors can take advantage of short-term opportunities as the token consolidates below the $0.19 resistance.

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