(AMC) – If you invested $ 1000 in AMC stocks a year ago, here’s how much you would have now

Investors who have held stocks in the past year have generally seen big gains. But there is no doubt that some reputable stocks have performed better than others along the way.

AMC’s great race: One company that has been a great investment over the past year has been the movie giant AMC Entertainment Holdings Inc (NYSE: AMC).

Unfortunately for long-term AMC investors, the stock and the company were struggling even before the COVID-19 pandemic, as the entertainment industry underwent a drastic shift towards an over-the-top streaming model. However, AMC experienced a near-worst-case scenario in March 2020. The global COVID-19 outbreak has ended all of AMC’s operations. In June, the company announced that it had “significant doubt” about avoiding bankruptcy.

In 2019, AMC generated a net loss of $ 149.1 million on revenue of $ 5.47 billion. In 2020, those numbers have plummeted to a net loss of $ 4.59 billion on just $ 1.24 billion in revenue.

In early 2020, AMC shares were trading around $ 7.30. In early March, the stock had fallen below $ 6.30 after news of the virus spreading in China raised concerns about a U.S. pandemic. On March 17, AMC shares fell as low as $ 1.95 in intraday trading. A day later, the company announced that it would shut down all of its theaters for at least six to 12 weeks.

AMC shares rebounded to $ 7.71 in September 2020 amid a large market rally. The stock finally hit its pandemic low of $ 1.91 in January 2021, as investors took a closer look at the growing possibility that AMC would never be able to manage its debt of more than $ 11 billion.

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AMC in 2021, beyond: Fortunately for AMC investors, a miracle happened in late January 2021. AMC on the verge of bankruptcy, Reddit’s WallStreetBets community orchestrated a coordinated buying campaign in the stock as part of a targeted effort to short-term compression.

The short-term squeeze pushed the stock from less than $ 2 a share to $ 20.36 within days. Since the dust settled on the initial short squeeze, AMC shares are now back to the $ 10.63 level.

AMC investors who bought a year ago and were held back have been completely bailed out by the short-term pressure and have now delivered an impressive return on their investment. In fact, $ 1,000 in AMC shares purchased on March 29, 2020 is worth around $ 2,931 today.

Looking ahead, analysts expect AMC’s fundamentals to bring the stock back to earth over the next 12 months. The average price target among the seven analysts covering the stock is $ 2, suggesting an 81% drop from current levels.