![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAzMjI4NDM1\/jim-cramer_me_103026.jpg?profile=rss\")
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I still remember the first movie theater I went to. The seats weren’t particularly comfortable, the place wasn’t fancy, and honestly, none of that mattered to me.<\/p>\n
I was there for the big screen, the popcorn, the hype, and the chance to forget about everything else for a couple of hours. <\/p>\n
Years later, I walked into a modern theater with reclining seats and a much more luxurious setup. It was a completely different experience, comfortable, expensive, and a little too polished. But surprisingly, a part of me still missed the simplicity of that first experience.<\/p>\n
That gap between a great experience and a great investment is the AMC (AMC) story in 2026. On Oct. 29, 2026, during the “Mad Money” Lightning Round, Jim Cramer gave a caller his verdict.<\/p>\n
I think that this stock should be sold.<\/p>\n
What looks odd is the timing. AMC just had its best quarter in its 106-year history. The stock is up 97.44% year to date and 15.79% over the past year, according to Yahoo Finance. It trades at $3.08, just below its 52-week high of $3.40 set on Sept. 28, 2026.<\/p>\n
Also Read: AMC Theatres CEO says one long-running entertainment debate is finally over<\/p>\n
A record quarter that makes AMC’s sell call look strange<\/p>\n
There is a contradiction here. In Q2 2026, AMC reported total revenue of roughly $1.6 billion, up about 14.2% year over year, according to AMC’s Q2 earnings release. <\/p>\n
Adjusted EBITDA jumped 70% to $321.4 million, the first time it has ever crossed $300 million in a quarter. Free cash flow was $190.1 million. Adjusted EPS was $0.14.<\/p>\n
In our 106-year history, never before has AMC had such superb results.<\/p>\n
He added that AMC “has often been underestimated, and yet we continue to outperform.”<\/p>\n
AMC is the world’s largest theater chain, with roughly 860 theaters and 9,600 screens. A summer box office lifted by hits such as “The Odyssey” gave it the kind of quarter exhibitors spend years hoping for. <\/p>\n
If you judged the business on its own, Cramer’s call would be hard to defend. That is the point. His call is about the stock, not the popcorn.<\/p>\n
Where AMC’s bear case actually lives<\/p>\n
I covered a similar split earlier when Cramer told viewers to sell Rocket Lab after a Neutron delay: a story the market loved, and a balance sheet it could not ignore. AMC fits the pattern for different reasons. Three stand out.<\/p>\n
First, debt. Even after reducing principal balances by about $1.7 billion since the end of 2020, AMC still carries nearly $4 billion in long-term debt.<\/p>\n
More AMC Entertainment Holdings:<\/p>\n
AMC credit upgrade comes with a catch<\/p>\n
New Spider-Man movie raises stakes for struggling cinema giant<\/p>\n
Popular movie theater chain keeps closing locations<\/p>\n
CEO Adam Aron noted the company refinanced $400 million, extending maturities by four years, and has no maturities currently expected until 2029. <\/p>\n
I admit that is real progress. It also means interest costs remain a heavy weight on a business whose profits arrive in bursts.<\/p>\n
Second, the gap between adjusted and reported results. While adjusted EPS was positive, the GAAP net loss widened to $11.4 million from $4.7 million a year earlier, even in its strongest quarter in history. Many fundamental investors discount adjusted figures when the bottom line remains in the red at peak season.<\/p>\n
Third, dilution. In the same quarter, AMC raised about $285 million in gross proceeds through equity offerings. That keeps the balance sheet healthier, but every new share trims the value of the ones already held.<\/p>\n
AMC is the world’s largest theater chain, with roughly 860 theaters and 9,600 screens.<\/p>\n
Sunan Wongsa-nga \/ Getty Images<\/p>\n
Why a theater chain trades like a ticket to something else<\/p>\n
I felt this tension again while thinking about that recliner theater. A ticket there costs more than a whole evening out used to cost in my city, and people still pay it for the right movie. <\/p>\n
The business can be healthy while the stock behaves like a lottery ticket. Retail traders have treated AMC as a symbol since the meme-stock era, which means its price often reflects sentiment more than cash flow.<\/p>\n
Cramer has long favored companies with strong balance sheets over speculative stocks, and his Lightning Round answers rarely leave much room for nuance. Still, Aron raised a valid point.<\/p>\n
He said reducing leverage should lower interest rates on roughly 75% of AMC’s debt, potentially saving the company about $51 million in annual interest expenses if the required conditions are met. That would come on top of the $16 million in savings already achieved.<\/p>\n
The next test is close. AMC reports Q3 earnings on Nov. 4 after the market closes. For holders who have ridden the stock up almost 100% this year, that report decides whether the summer was a turning point or a peak. <\/p>\n
A film business lives and dies by its slate, and a record quarter has to be repeated before the market stops pricing it as a one-off. <\/p>\n
For the casual moviegoer, AMC may be in the best shape of its modern life. For the investor, Cramer’s message is that a good year at the box office does not erase a $4 billion debt.<\/p>\n
More Stocks News‘Big Short’ trader says Anthropic slowdown tests AI boomNvidia has a stake in SpaceX that came from an unexpected placeVeteran fund manager revamps Alphabet stock price target after brutal sell-offIntel CEO reveals a PC problem as Goldman cuts stock target#Jim #Cramer #sell #popular #meme #stock #record #quarter<\/p>\n","protected":false},"excerpt":{"rendered":"
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