“AMC and other movie theaters, such as Cinemark Holdings and IMAX Corporation, will have to innovate in order to justify higher stock valuations.”
 
 

Full quote provided:

“The rise of home entertainment significantly cuts into the movie theater profit margins. Hollywood movies used to have a monopoly on production value, but ever since The Sopranos, more and more television series are competing on production quality. Home entertainment systems have also vastly improved in quality particularly with audio.
 
AMC and other movie theaters (e.g. CNK, IMAX) will have to innovate in order to justify higher stock valuations. Despite home entertainment, movie theaters remain a common date venue and leisure activity for minors. Perhaps AMC can use its elevated valuation to raise capital in order to develop new ancillary services. Another meme stock, GameStop (GME), is well-positioned to reinvest in innovation. Indeed, there may be more opportunities for innovation in digital entertainment which competes for the same consumer spending as movie theaters like AMC.”