AMC Stock: The Breaking Bad Effect


"Breaking Bad" has been a boon for anyone who owns stock in AMC Networks (Nasdaq: AMCX) .

The finale of the hit show about a high school chemistry teacher turned drug kingpin drew 10.3 million viewers Sunday night - a record for the cable network AMC. Buzz surrounding the Breaking Bad finale pushed AMC stock up 3.5% in the last week.

Now that AMC's signature show is over, however, what happens to the stock from here?

Let's take a quick look at the stock's fundamentals:

Current Share Price: $68.94

Market Cap: $5 billion

Trailing P/E: 20

Forward P/E: 17.6

Profit Margin: 17%

Dividend: None

Those are pretty solid numbers, especially when you consider that AMC stock is already up more than 34% year to date. But how much of that bump was fueled by Breaking Bad?

Not much, it appears.  AMC shares have actually fallen since peaking at $71 on August 7. The Breaking Bad finale gave the stock a nice late push, but AMC is only up 4.5% in the last three months.

And AMC's success wasn't predicated on one show. "Mad Men" and "Walking Dead" are other wildly popular, award-winning dramas that air on AMC. In fact, the Walking Dead premiere last October drew more viewers - 10.9 million - than the Breaking Bad finale just did.

The next season of Walking Dead premieres (fittingly) on Halloween, so that could give the stock a nice bump. Last year's mid-October premiere gave the stock a 14% bump in 10 days.

Breaking Bad was undoubtedly a major part of AMC's primetime lineup. But the network is not a one-trick pony.

Just because its signature show is dead, it doesn't mean the stock is too.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: AMCX

Wyatt Investment Research

Wyatt Investment Research

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