What Happened?
Shares of television broadcasting and production company AMC Networks (NASDAQ: AMCX) fell 3.2% in the morning session after the stock's negative momentum continued as the company reported quarterly earnings that missed analyst estimates and showed a decline in year-over-year revenue.
The media company announced earnings per share of $0.18, falling short of the consensus estimate of $0.31. Although its revenue of $561.74 million was better than what analysts had expected, the figure was still down 6.3% compared to the same quarter from the previous year.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AMC Networks? Access our full analysis report here.
What Is The Market Telling Us
AMC Networks’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 5.1% on the news that investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced. Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over. The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.
AMC Networks is down 22.8% since the beginning of the year, and at $7.71 per share, it is trading 26% below its 52-week high of $10.41 from January 2025. Investors who bought $1,000 worth of AMC Networks’s shares 5 years ago would now be looking at an investment worth $271.40.
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