10 Worst Falling Stocks To Buy Now

2. AMC Networks Inc. (NASDAQ:AMCX)

Number of Hedge Fund Holders In Q2 2024: 15

Short Interest % of Shares Outstanding: 24.61

YTD Share Price Loss: 60%

AMC Networks Inc. (NASDAQ:AMCX) is a media and entertainment company that distributes BBC America, AMC, and other networks. Its reliance on the media industry for its revenue means that the firm is dependent to a large extent on advertiser revenue for its sales. Consequently, slower ad spending in 2024 due to higher rates and a tough business environment has also led to AMC Networks Inc. (NASDAQ:AMCX)’s stock being down by 60% year to date. The firm’s shares tanked by a whopping 37% in June after it announced a $125 million offering of convertible private notes. This spooked investors as not only do convertible notes carry the chance of valuation dilution through their conversion into shares but also because they threaten to eat into cash flow due to high interest rates. For AMC Networks Inc. (NASDAQ:AMCX), a firm that reported a 17% annual revenue drop in Q1 before the notes announcement, the decision was ill fated. This is especially true as networks struggle to compete with streaming services, and AMC Networks Inc. (NASDAQ:AMCX) lacks the heft of bigger players to enter into mega deals to boost viewers.

AMC Networks Inc. (NASDAQ:AMCX)’s management is targeting streaming amidst the turmoil. Here’s what it shared during the Q2 2024 earnings call:

“Our overall strategic approach is evident in our new branded distribution partnership with Netflix, featuring prior seasons of 15 AMC shows on the number one streaming platform in the world. This non-exclusive licensing agreement will give the vast US audience of Netflix subscribers access to our high quality, critically acclaimed content, with the AMC brand clearly represented. We believe that finding a bigger stage for our shows will be a big win for our own platforms and existing distribution partners. Years ago, Breaking Bad demonstrated the power of Netflix to help build awareness and interest in a series that was still launching new seasons on AMC.

We’re looking forward to seeing our core franchises and most important current shows tap into this same powerful engine for audience expansion. Unique partnerships like this demonstrate that AMC Networks is an innovative and nimble company unencumbered by the constraints and limited options facing others in our industry. We have the freedom to work with anyone, and we have a continued commitment to nurturing strong brands and quality storytelling supported by a sustainable and predictable wholesale business model. In addition to new content partnerships, we’re growing distribution of our linear networks and AMC Plus through new internet delivered skinny bundles.”