AMC Stock: Cramer Says Sell as Nov. 4 Earnings Near
AMC Entertainment posted its best quarter in 106 years with Q2 2026 Adjusted EBITDA of $321.4 million, up 70% year over year. Yet Jim Cramer advised selling October 29, citing the company's $7.72 bill
AMC Stock: Cramer Says Sell as Nov. 4 Earnings Near
NEW YORK, October 31 —
When Jim Cramer told a caller to sell AMC Entertainment Holdings, Inc. (AMC) on October 29, the company had just posted its best quarter in 106 years, and Q3 earnings arrive four days later with options pricing an 11% swing either way.
- Q2 2026 Adjusted EBITDA $321.4M, up 70% YoY; first time above $300M in a single quarter
- Total debt $7.72B vs. $780M cash; trailing EPS negative $1.02; no annual profit since 2018
- Q3 consensus EPS of $0.11 revised 73.3% lower in 30 days; earnings November 4
The Record That Didn't Convince Cramer
AMC Entertainment Holdings operates movie theatres across the U.S. and internationally, a business running on Hollywood's box-office calendar since its 1920 founding. Q2 2026 revenue of approximately $1.6 billion grew 14.2% year over year, and Adjusted EBITDA of $321.4 million surged 70%, crossing $300 million for the first time in a single quarter. Three of AMC's last four reported quarters beat EPS estimates, the most recent by 366.7%. Cramer's sell call arrived while those results were plainly on the table, suggesting the balance sheet, not the income trajectory, drove his conclusion.
A Century of Debt Doesn't Retire on One Quarter
The structural problem is $7.72 billion in total debt against $780 million in cash, a ratio that explains why AMC has not posted an annual profit since 2018 despite record EBITDA. Trailing EPS sits at negative $1.02; at least two theatrical exhibition rivals now pay quarterly dividends while AMC services its debt. On October 6, AMC filed an 8-K disclosing a new material definitive agreement and the creation of a direct financial obligation, a filing that rarely signals deleveraging. The stock has declined more than 99% over five years; the 97% year-to-date rally is measured against that context.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| AMC | $2.7B | 29.1x | +18.6% |
| GME | $12.2B | 13.0x | +9.6% |
| BB | $4.9B | 35.7x | +75.4% |
| NIO | $8.0B | 25.8x | -56.7% |
| SNDL | $304M | 41.3x | -43.4% |
| COIN | $38.0B | 48.8x | -56.6% |
Q3 Must Confirm the Turn
Q3 2026 earnings arrive November 4. Wall Street's consensus EPS of $0.11 projects a 152.4% year-over-year increase, yet that estimate has been revised 73.3% lower in the past 30 days. Options traders have priced roughly an 11% move. At 29.1x forward earnings, valuation leaves little room for disappointment; run AMC's numbers through a DCF calculator and the sensitivity to EBITDA trajectory becomes immediately clear. The bull case rests on Q3 Adjusted EBITDA approaching $321.4 million; a significant step-down confirms the bear read. Run the free AMC Entertainment Holdings, Inc. deep-dive → before earnings.
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Frequently Asked Questions
Why did Jim Cramer say to sell AMC stock?
Jim Cramer told investors to sell AMC on October 29 because of the company's balance sheet. AMC carries $7.72 billion in total debt against only $780 million in cash, and has not posted an annual profit since 2018, despite strong recent operating performance.
What were AMC's Q2 2026 results?
AMC Entertainment posted revenue of approximately $1.6 billion, up 14.2% year over year, and Adjusted EBITDA of $321.4 million, surging 70% and crossing $300 million in a single quarter for the first time. Three of AMC's last four reported quarters beat EPS estimates.
When does AMC report Q3 earnings?
AMC will report Q3 2026 earnings on November 4. Wall Street's consensus EPS estimate of $0.11 projects a 152.4% year-over-year increase, but that estimate has been revised 73.3% lower in the past 30 days.
What valuation does AMC trade at?
At 29.1x forward earnings, AMC's valuation leaves little room for disappointment. Options traders have priced roughly an 11% move for the earnings announcement on November 4.
What is AMC's debt situation?
AMC carries $7.72 billion in total debt against $780 million in cash. The company's trailing earnings per share sit at negative $1.02, and at least two theatrical exhibition rivals now pay quarterly dividends while AMC continues to service its debt burden.
Jim Cramer told viewers to sell AMC on October 29 even as the company had just posted its best quarter in 106 years — and with Q3 earnings four days away, options traders are pricing an 11% swing. The stock trades above at least one analyst consensus target while the forward earnings estimate has been slashed 73% in the past month, leaving investors to decide what the rally is actually pricing.