The entertainment industry has been severely affected due to lingering macro headwinds and shifting consumer spending behavior, as high inflation dampens discretionary spending. However, the industry is expected to witness robust growth in the long term, thanks to the growing demand for digital entertainment worldwide amid the rising popularity of OTT platforms and online gaming.
Given this backdrop, struggling entertainment stock AMC Entertainment Holdings, Inc. (AMC) is best avoided now. On the other hand, investors could hold IMAX Corporation (IMAX) and wait for a better entry point in this stock.
