AMC also made the bold move to invest in a gold and silver mining company earlier this year.Īt the time, Aron said the decision to buy a stake in Hycroft Mining was an example of how AMC is “thinking creatively and boldly about our future,” adding that Hycroft is “just like AMC of a year ago…It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue.”īut others in the industry seem envious of the fact that AMC has become a pop culture phenomenon. The company is now selling its signature popcorn outside of theaters through partnerships with retailers. And sales are expected to surge nearly 70% to $4.3 billion.ĪMC, to its credit, is taking bold steps to try and boost sales (and its stock price) further though. That is down from a loss of nearly $1.3 billion in 2021 though. The company is expected to report a loss of about $638 million this year. (AAPL) and Hulu, which is also controlled by DisneyĪdd all that up and it’s not hard to see why AMC remains in a somewhat precarious financial position. The studios also offer a deluge of original, binge-worthy TV shows on these and other services such as Amazon’s (CMCSA) owned Peacock and HBO Max, which like CNN is part of Warner Bros. Hollywood is shifting more movies to platforms like Disney+, Netflix 'Top Gun: Maverick' is unlike any blockbuster Hollywood has seen in yearsīut theaters now face stiff competition from streaming video. Pete "Maverick" Mitchell in Top Gun: Maverick from Paramount Pictures, Skydance and Jerry Bruckheimer Films. The box office in the US has rebounded from the depths of 20. Movie fans also seem willing to go to theaters for truly big blockbuster film events like the long-awaited “Top Gun” sequel, the latest in the Jurassic World and Marvel franchises or animated fare for the kids. Thank you to retail! You really did save AMC,” Aron wrote. Fortunately, AMC is in a very, very different situation - because retail investors embraced us and let us raise boatloads of cash. “Cineworld/Regal just filed for Chapter 11 bankruptcy protection for its theatres in the U.S.and U.K. AMC reported at the end of the second quarter that it had $1.17 billion in cash and other liquidity on its balance sheet, a fact that Aron proudly noted in a tweet Wednesday following the news of the Cineworld bankruptcy. Sure, it’s true that AMC is in better financial shape for now than competitors. That’s roughly in line with the S&P 500’s 16% drop. (MCS), are all lower this year by about 10% to 15%. Shares of other movie theater owners, such as Cinemark What’s the problem? It seems no amount of promotional hype from AMC CEO Adam Aron can overcome the fact that the economics for theaters are terrible – no matter how often he notes how much cooler AMC is than other theaters and how it has this army of loyal individual investors.ĪMC rival Cineworld, which owns US-based chain Regal, just filed for bankruptcy. The price of one AMC plus one APE share is also about 50% below where AMC’s stock began 2022. (AMC is trading for around $8.60 and APE is at about $5.20) Do the math and that’s a nearly 25% drop in just the past few weeks. (AMC) on Reddit’s WallStreetBets subreddit and other social media sites would eat up both stocks like a carton of buttery popcorn.ĪMC even made the ticker of the new shares “APE” in honor of its Reddit devotees.īut since AMC split into two stocks, the combined value of AMC and APE is hovering near $14. The hope was that the so-called apes who are fans of AMC (AMC) were trading around $18 just before the company decided to issue a new class of preferred shares to existing investors in late August. Movie theater chain AMC is a top pick for meme investors, but the stock hasn’t exactly turned out to be the feel good hit of this summer.
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