Was Jim Cramer Right About AMC Entertainment Holdings Inc. (AMC)?

We recently published a list of Was Jim Cramer Right About These 11 Stocks? In this article, we are going to take a look at where AMC Entertainment Holdings Inc. (NYSE:AMC) stands against other stocks that Jim Cramer discusses.

A caller said they bought shares of AMC Entertainment Holdings Inc. (NYSE:AMC) for under $3 and asked if they were “on a rocket ship to the moon.” Cramer advised a more cautious approach:

“I want you to sell — take your capital out and you can play with the house’s money for the rest. The balance sheet, even after the most recent sale of stock, is not good — and the box office numbers are horrendous. So take out your cash, let the rest run.”

An audience of moviegoers inside a theatre, savoring the latest cinematic experience.

Cramer was right as the stock is now back down below $3, recording a 36.99% decline since that episode. The American movie theatre chain AMC Entertainment Holdings Inc. (NYSE:AMC) is struggling with weak box office revenues and ongoing debt issues despite retail investor interest and volatility.

Cramer continues to advise his viewers to not buy the stock. Here are his latest comments from late April this year:

“The answer is that they should have reorganized by now and they haven’t. They have way too much debt. I want you to stay away from that one.”

Overall, AMC ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.