AMC Entertainment Holdings, Inc

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AMC
AMC Entertainment Holdings, Inc NYSE
 
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History of AMC

Important events

Mar 162022

AMC strikes gold, literally

As part of AMC’s new diversification strategy, it has bought a stake in a mining company. You’d be forgiven for thinking we’re talking about a crypto mining company, but you’d also be wrong.

🔍 Key points:

  • AMC has agreed to buy a 22% stake in Hycroft Mining, spending $28m on the small and struggling gold and silver mining firm. Given AMC has debt worth $5.4bn, it’s "a little baffling" that it’s splashing the cash like this, according to Wedbush analyst Alicia Reese (among others).
  • But CEO Adam Aron says they’re on “a glide path to recovery”. Apparently successes in hits like the new Batman and Bond flicks have helped amass a war chest that makes the purchase possible, and he claims that the embattled Hycroft is v similar to AMC a year ago and that he can help it “surmount its challenges”. Confidence is key, we guess…
  • Shareholders must agree, because prices popped over 4% on Tuesday after four consecutive days in the red. Then again, AMC investors are hardly your typical group, so there’s no telling what thrills them.
Peter Olexa / Unsplash
Mar 022022

AMC earns some applause

AMC shows a fourth quarter screening that leaves investors feeling starstruck despite getting a peek at the trailer earlier this month.

Key points:

  • AMC rallied 5% in extended trading on Tuesday after releasing its “best quarterly results in two years”. It reported LPS of $0.26 (down from $6.21 per share the year before) on revenues of $1.17bn (up from $162m the year before, but tbf that was mid-pandemic).
  • Box office hits like Spider-Man: No Way Home reeled in a lot of cash. The quarter boasted a bunch of long-anticipated films like Venom 2 and the latest James Bond, bringing the masses for a cinema date. Omicron forced the pushback of current quarter releases though, which is expected to weigh on Q1, but it apparently it’ll all even out towards the end of the year.
  • AMC is raising its ticket prices as it tests out a refreshed pricing model, which will see new releases cost more than other films (those are the ones most people come to see). CEO Adam Aron says this, together with its focus on NFTs and crypto, will help AMC become “something much greater than solely a movie theater operator”.
See all reported financials
Road Trip with Raj / Unsplash
Feb 022022

A promising Q4 trailer

Investors get to see some BTS footage of what Q4 has in store, and they like what they see.

  • AMC released preliminary Q4 results that topped analyst expectations on Tuesday, and it’s set to be the strongest quarter in over two years.
  • Revenue is expected to soar to $1.7bn from just $163m in Q4 2020, which tbf was mid-pandemic and before the retail trading crowd found its feet. It did, however, warn that its losses would be wider than expected.
  • Prices boasted gains of as much as 16% in intraday trading before closing Tuesday up 5% – after six straight weeks of losses, could this be a turning point, or is that too much to hope for in meme stock world?
Jeffrey Gruszka / Unsplash
Jan 172022

The apes follow their alpha

AMC insiders get investors wondering if there’s something they should know. If everyone else dumped their shares, would you?

  • The famously volatile meme stock fell 9% on Thursday to hit a 2022 low after some fell prey to the peer pressure.
  • CEO Adam Aron sold another $7.1m in shares on Tuesday at a slightly discounted price, and Chief Content Officer Elizabeth Frank chucked a chunk of her stock too. Insiders sold well over $70m of their stock in 2021.
  • To be fair, Aron warned that he would be selling some of his stake last year, so the dramatic drop could be an overreaction. Will you keep HODLing?
Back in August, I said that at age 67 I’d sell some AMC shares toward year-end, all trading decisions out of my hands, under guidelines of a Chase 10-b-5-1 plan spread over 3 months. Those sales are now all finished. I STILL OWN OR PLAN TO VEST IN 2,302,760 AMC SHARES. I am in!
Jan 042022

One CEO's New Year's Resolution

Turns out even CEOs are susceptible to the temptation of pledging a whole bunch of New Year's resolutions. Let’s see if Adam Aron can keep his.

  • AMC is down over 7% for 2022 as of Tuesday morning trading, after leaving a rollercoaster 2021 as one of the market’s best performing large-cap stocks with gains of over 1,136%.
  • Adam Aron vowed on Twitter to tidy up AMC’s balance sheet this year and refinance its pandemic debt.
  • AMC spent over $320m in interest on its borrowings in the first nine months of 2021, and it could use the extra cash to try to keep its memestock momentum.
Chase Yi / Unsplash
Dec 132021

The inside story

AMC sees a two-day sell-off after news hits that insiders have been dumping their shares.

  • AMC ended Friday down 6.86%, now down over 15% in two days and 19% for the month as Omicron hit the U.S.
  • Top execs have been selling their stock. CEO Adam Aron sold $6.9m worth in shares, and the movie operator's CFO sold all of his remaining $600k in shares – insiders have sold stock 24 times in the last three months and only bought once.
  • It’s not you, it’s me. CEOs and corporate insiders have dumped a record $69 billion in stock this year as tax hikes loom.
Illustration by TradingView
Dec 072021

Another NFT success story

AMC has had some newfound NFT success, and it’s making the most of it.

  • AMC is offering free NFTs to all of its shareholders in partnership with the Worldwide Asset eXchange (WAX).
  • It started giving awayI own AMC” NFTs last week to people who bought tickets for the latest Spiderman movie, a wildly popular offering that sent online ticket sales to their highest ever levels.
  • 2021 has been a breakthrough year for NFTs, with the market expected to top $17.7bn this year.
Erik Mclean / Unsplash
Nov 232021

The Silverback leads a pack of share sales

Adam Aron kicked off a trend two weeks ago that has seen a bunch of top execs throw out their shares.

  • AMC insiders have sold $70m in shares this year, led by CEO Adam Aron, with no purchases in sight.
  • Adam dumped $25m in AMC shares two weeks ago to do some “prudent estate planning” – all while maintaining his “confidence” in the company – and 14 other execs seemed to think that was a great idea.
  • The stock is still up nearly 1,800% this year as online retail traders continue to stand behind the “You buy. You hold” mindset.
You buy. You hold. You stay until the shorts fold. The noise is only drowning if you choose to listen to its scream. This is the way, and I will not be swayed. #AMCARMY 🦍
Nov 152021

AMC takes crypto mainstream

After months of teasing the Twitterverse, Adam Aron makes good on his crypto payments promises.

Nov 112021

The Silverback goes for gold

Head Ape Adam Aron is dumping shares, as America’s ultra-rich scramble to get their affairs in order before Biden’s tax bill whips their cash.

  • Adam Aron sold $25m in AMC shares, sending prices down over 3% in Wednesday after-hours trading despite having warned investors in advance.
  • Biden is going billionaire hunting, tracking down unpaid taxes by going after their tradable assets
  • Aron is doing some “prudent estate planningand banking on AMC’s 1,660% yearly gain to keep the ship steady, but there’s no telling how such a volatile stock might respond.
Nov 092021

Q3 earnings have AMC investors calling “cut!”

AMC gives investors a good Q3 earnings show, but the post credit scene has people wishing they’d left early.

💸 AMC had its best quarter since pre-Covid with a sixfold increase in revenue – but prices dropped after hours.
🍿 Movie-goers doubled this quarter as the economy enjoyed a re-opening.
💱 Crypto is the key for CEO Adam Aron. AMC already accepts a bunch of coins and now wants to launch its own NFT.
🚨 Plot twist – AMC warned that the pandemic isn’t gone yet, and Winter is Coming...
🎬 AMC lost domestic market share in Q3 despite gains at the start of the year, so it might take more than a couple of rom coms to get back on track.
Nov 022021

AMC sees a scarily good October

AMC gets a pat on the back of 4.81% from excited investors after the meme stock showed some industry strength and reported that October brought in the highest ticket sales revenue since before the pandemic in February 2020. The month was boosted by a bunch of box office releases, including No Time to Die, Venom, and Dune; and other cinema chains also reported a strong comeback. AMC didn’t provide exact box office numbers, but said:

When the final tickets are counted for showtimes tonight, the domestic industry box office for October 2021 is estimated to come in considerably higher than that of any previous month since February of 2020

Whilst its box office numbers may have seen some strength this October, AMC’s share price wasn’t so lucky, and the stock ended the month down over 7%.
Nov 012021

Adam Aron gets the opinion of the apes

AMC is nothing if not a democracy, or so it seems as CEO Adam Aron once again sets a Twitter poll to see what the Apes have to say about its crypto activities – this time though, it's Shiba Inu that’s in the hot seat.

AMC takes its crypto commitment seriously – you can already buy digital gift cards to watch movies with Bitcoin (BTCUSD), Ethereum (ETHUSD), Litecoin (LTCUSD), and Dogecoin (DOGEUSD). The meme stock is also currently in the process of making it so that people can pay online for tickets and snacks in cryptocurrencies, and last week even hinted at the idea of creating a company-specific cryptocurrency. AMC likes to give the people what they want, having added Dogecoin (DOGEUSD) to the list of accepted currencies after the CEO asked Twitter if they wanted the dog themed currency to feature. Now, given the unprecedented boom that rival dog coin Shiba Inu (SHIBUSD) has seen this month, CEO Adam Aron is once again taking it to the Apes (as AMC investors like to call themselves, in homage to the Planet of the Apes movies.) The chief executive posted another poll on Friday asking if Shiba (SHIBUSD) should be added to the list, and so far over 85% of the 144,636 votes have been a “Yes”. With two days left on the poll, the voter numbers have already beat the 140,388 users that voted in the Doge poll in September, so clearly Twitter is excited.
TWITTER POLL #2: As you know, you can now purchase AMC gift cards using cryptocurrency, and our IT group is writing code so that soon we can accept online payments in Bitcoin, Ethereum, Litecoin and Dogecoin among others. Should we strive to take Shiba Inu too?
Oct 252021

AMC deals with Disney delays

Disney’s schedule shake-up earlier last week combined with a pull-back from an attempted short squeeze leaves AMC down nearly 10% for the week.

AMC started the week with a bang after #AMCSqueeze trended on social media platforms on Monday as the Apes “celebrated” the birthday of Citadel founder Ken Griffin – who is pretty unpopular among retail traders after he called the cohort “conspiracy theorists”. Retail traders might be losing their edge though because the rally was brought to an end by Disney, which delayed the release of a number of Marvel films that AMC was relying on to bring in the big bucks.

The losses extended through the week, and the stock closed down over 10% for the week.
Josh Chiodo / Unsplash
Oct 202021

Adam Aron eyes crypto

AMC is still riding on the successes of meme stock mania, but CEO Adam Aron is hinting at a new direction for the company, potentially diving deeper into its crypto journey.

AMC has been dipping its toes into the cryptocurrency world recently, introducing a crypto payment system a few weeks ago, and it looks like the company might be ready to dive in as CEO Adam Aron gets ready to take the company in another direction. The executive alluded to a few surprises on the way for investors as the company makes changes to its business model. Not long after, Aron went on to say that the company is looking closely at lucrative world of crypt and has a number of crypto projects in the pipelines, adding:

We’ve made a lot of noise about getting hyperactive in cryptocurrency. There are many reasons why AMC could be a successful issuer and redeemer of cryptocurrency. And that’s just one out of half a dozen ideas that we’re working on right now.

AMC lost all of its Tuesday short-squeeze gains on Wednesday, ending the day down 5.18%.
Oct 192021

Spooky season gives AMC a boost

Theatre goers are getting excited for spooky season, and AMC lifts nearly 6% on Monday as “Halloween Kills” gets ready to hit theaters and kill the box office numbers.

AMC is trading at its best levels of the month so far after taking investors on a roller coaster ride this summer, and is hoping that the strong momentum will continue on the back of movie mania. The meme stock has been reaping the rewards of strong box office numbers recently – new movies like Venom and No Time to Die have gotten record attendance and boasted the highest grossing weekend since before the pandemic. A new thriller, Halloween Kills, will debut on Friday, and the company has its fingers crossed for another milestone-hitting weekend.

The hashtag #AMCSqueeze has also been trending on social media platforms the last few days as the Apes “celebrated” the birthday of Citadel founder Ken Griffin, who is pretty unpopular among retail traders after he called the cohort “conspiracy theorists”. Nothing like a short squeeze to show the traditionalists who’s top dog.

AMC ended Monday up 5.62 at $43.03, its highest closing price since September 17.
Universal Pictures / Wikimedia Commons
Oct 142021

Is AMC struggling to outrun the short sellers?

Despite an effort from the online army to send AMC prices rallying on Tuesday, the stock closed the day down as short sellers catch up.

The online army tried to send AMC soaring on Tuesday, with #AMCSqueeze trending through the day and Reddit’s WallStreetBets scattered with the stocks name. However, the meme stock might be losing its edge and closed Tuesday down 1.15% after a well known short seller said it had covered its AMC short bet at a 30% profit. Iceberg Research first tweeted about its short in the stock in July, saying:

We are short $AMC. Fundamentals are obvious. After one month of trading sideways and lots of money lost in call options, the pump seems increasingly shaky.

Just over three months later, the firm gave an update, saying it had covered its short bet with a profit of 30% and adding:

We agree with the “Apes” when they demand more transparency on the role of market makers in the meme sagas: payment for order flow structurally generates conflicts of interest. But there is frequent confusion between market makers and activist short sellers. Different crowd.

Prices made an attempt at a rebound on Wednesday and closed the day up just under 3%.
We covered our $AMC shorts. Down 30% from our initial position. 1/4
Oct 082021

Short sellers are recovering

Short sellers of meme stocks AMC and GameStop got hit hard earlier this year, but they're on the rebound and have recovered nearly $1 billion in the last two weeks alone.

This year's meme stock mania has taken its toll on investors and investment firms short-selling the stock. The short squeeze led to a bunch of hedge funds to take heavy losses or even go out of business – those who bet against AMC have lost around $3.49 billion this year, and Gamestop (GME) short-sellers have seen losses of around $6.21 billion. However, that number is much lower than it was on September 17, with AMC short-sellers recovering $590 million and the GameStop (GME) team recovering $230 million since then. Collectively, the gains add up to $820 million in just two weeks, and $2.3 billion in the last three months. Part of the recovered losses are thanks to the declining prices of the meme stock pair – since the third week of October, AMC has dropped around 17% and GameStop (GME) has seen losses of about 14%.

GameStop (GME) closed the day up 0.61% and AMC ended up 3.56%.
Oct 062021

AMC dares to take on Doge

After teasing the people with plans to start accepting Dogecoin, AMC is diving in and will now accept Dogecoin for digital gift cards – the news doesn't go down well apparently, and prices sink over 4%.

AMC has taken its first step towards Doge acceptance after its CEO Adam Aron said the company might have to figure out how to add Doge following overwhelming demand. Aron tweeted on Tuesday that customers can now buy AMC digital gift cards with Dogecoin and other cryptos using their BitPay Wallet. AMC investors don’t seem that thrilled, and prices drop 4.39% – potentially thanks to Elon Musk saying he didn't think Doge was ready to be used to do things like buy movie tickets.
Huge news Dogecoin fans! As we work to accept online crypto payments, now you can buy @AMCTheatres digital gift cards (up to $200 per day) with Dogecoin and other cryptocurrency using a BitPay Wallet. Accepted on our web site, mobile app, and in theatres. https://bitpay.com/directory/gift-cards
Oct 052021

AMC’s record breaking weekend

Venom and No Time to Die help AMC have its highest grossing weekend since the pandemic hit in 2020, but the stock is brought down by a broader market sell-off and ends Monday down 4.39%

It was a blockbuster weekend at the moment, with two highly-anticipated movies hitting the big screens – Venom and No Time to Die both made their premiere, and AMC had its highest grossing weekend since before the pandemic after 3.9 million moviegoers went to watch the new releases. CEO Adam Aron took to Twitter, telling anyone doubting the power of the cinema to “Choke on that, baby”.

Despite the good news, AMC stock got brought down by a broader market sell-off driven by a retreat in tech stocks. Prices ended the day down 4.39%.
New press release from @AMCTheatres . Venom & Bond let us set records for our highest grossing weekend since the pandemic hit in 2020. Some 3.9 million visited our theatres globally. You know my thoughts on “sages” predicting demise of cinemas: Choke on that, baby, #CHOKEonTHAT
Oct 042021

AMC retires some of its debt

AMC has seen gains on the back of its fundamentals for a change, getting people excited after announcing that it has exercised an option to repurchase $35 million of its first lien debt. As a result, the company will have an extra $5 million in cash flow floating around every year. CEO Adam Aron said:

The repurchase of some of our highest cost debt is one of the many steps that we are taking to optimally position AMC for the future. In addition to reducing our interest-bearing debt, we are also using our enhanced liquidity and improving business fundamentals to make meaningful reductions in deferred rent obligations. At the same time, we continue to take steps to improve our operating results and we are capitalizing on opportunities to grow and enhance our business.

Prices ended Friday at $38.46.
Sep 272021

AMC gets in hot water over Carmike deal

AMC has been hit with a lawsuit from an investor unhappy with the way the company handled its $2.1 billion merger with Carmike Cinemas. The 2016 deal made AMC the country’s largest theatre chain, although it was slapped with a class action suit in 2018 for not fully divulging information on Carmike's financial problems in advance. The class action was dismissed, but investor John Lyon III isn't giving up, demanding that the “fraudulent” behavior be investigated.

AMC has denied the allegations, and prices remain unmoved.
Sep 232021

Is adding Dogecoin a good idea?

As AMC seems to consider adding Dogecoin to its list of accepted cryptos, Elon Musk tweets that fees would need to be lower for Doge to work in a retail environment.

Meme-stock fan favorite AMC seems to be thinking about accepting Dogecoin (DOGEUSD) as payment – its CEO, Adam Aron tweeted that the company might have to figure out how to add Doge following overwhelming demand. The Dogefather doesn't seem to think the joke currency is ready for that yet, with Musk seeming to reference the possibility in a new tweet, pointing out that its:

Super important for Doge (DOGEUSD) fees to drop to make things like buying movie tix viable.

Musk has been working with Dogecoin (DOGEUSD) developers since May to “improve system transaction efficiency” on the network, so maybe the Technoking has a plan up his sleeve to fix the problem. Dogecoin (DOGEUSD) ended the day up nearly 12% either way, boosted by an overall market recovery following news that Evergrande will make its next debt payment, as well as a lack of dramatic news from the Federal Reserve after its two-day meeting this week. AMC got a boost too, closing Wednesday up 3.25%.
SO FASCINATING! Dogecoin Poll was by far my highest ever read tweet. In 24 hours, 4.2 million views, my most ever retweets, most ever replies. 140,000 votes 77% yes 23% no. It’s clear that you think AMC should accept Dogecoin. Now we need to figure out how to do that. Stay tuned!
Sep 212021

Meme Stock prices get mucky over China’s real estate crisis

The market sees a broader sell-off on Monday after Chinese real estate developer Evergrande causes economic concern, and meme stocks get dragged down.

The market had a moody Monday as Chinese real estate giant Evergrande (3333) made it clear it's not able to pay back its creditors at the moment – the company is deeply entrenched in China’s financial market and all of Evergrande’s creditors are domestic banks and financial institutions. Such an event could cause economic instability in the world’s second largest economy, sending waves through global markets – the The S&P (SPX) and the Nasdaq (NDX) had their worst days since May, crypto crumbled, and AMC (AMC) and GameStop (GME) ended the day down 9% and 6% respectively.

The market is also feeling pressure from the 2-day Fed meeting that starts on Tuesday, which will give investors an idea of the regulators tapering timeline.
Sep 162021

AMC spreads its crypto wings

AMC Entertainment adds three new cryptos to the list of digital assets it will accept as payment.

In August AMC entered into the world of crypto: saying it would start to accept Bitcoin (BTCUSD) as a form of payment. On Wednesday the meme stock broadened that scope yet further with three new cryptocurrencies. CEO Adam Aron tweeted on Wednesday that that AMC would now also accept Ethereum (ETHUSD), Litecoin (LTCUSD), and Bitcoin Cash (BCHUSD) at its cinemas.
Cryptocurrency enthusiasts: you likely know @AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021. I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash.
Sep 142021

AMC gets animated on Disney news

AMC gets a boost on Monday on the back of news that Disney will release all of its films exclusively in cinemas for the rest of the year.

Meme stock favorite AMC ended last week on a high after closing above $50 for the first time since the beginning of July, and the gains continued into Monday trading with a lift of just over 3%. The jump came after Disney (DIS), which has been playing around with releasing its new films online and in theaters together, said that they will be using the cinema route exclusively for the rest of its 2021 releases. AMC has seen some record-breaking attendance since COVID lifted, so the news got investors excited that its cinematic success could continue.

Prices ended Monday at $51.69.
Sep 092021

AMC moves to the small screen

AMC is making an unprecedented move: getting into TV advertising for the first time ever.

In the face of a COVID-changed world, AMC is adapting to what it apparently sees as necessity: getting into TV advertising with a massive campaign in partnership with Nicole Kidman.

The theater chain will spend more than $25 million on a multimedia campaign, and despite never having done TV ads, CEO Adam Aron said that because of the pandemic, AMC will no longer rely on “what’s always worked before.”

Sounds like a man with a plan.
Image: Jens Kreuter / Unsplash
Sep 082021
🍿

A big weekend at the movies

Shares of meme stock AMC Entertainment lifted up over 9% on Tuesday on the back of a big weekend out at the movies over Labor Day weekend.

AMC stock got a boost on Tuesday after the theatre chain had a successful Labor Day weekend, marking the first time that attendance numbers have surpassed 2019’s pre-COVID levels. Over 2 million people went to watch a movie at an AMC theatre over the long weekend, the highest number for the Labor Day weekend that the company has ever seen. CEO Adam Aron saw it as an encouraging sign for the future of the company:

This Labor Day weekend in the United States has been an important milestone for AMC as we steadily work to generate a recovery for our business. This encouraging surge in attendance at AMC signals that as Hollywood releases movies, Americans eagerly want to return to movie theatres again.
Sep 022021

Summer fun comes to an end for AMC

After a brief run-up with the meme stock crowd, AMC stock gets downgraded and sinks back down over 7%.

Shares of AMC are already beginning the par their gains of the last few days, sinking back down over 7% after lifting nearly 30% in August. It looks like the company’s fundamentals might be catching up with them, and the stock was severely downgraded by investment firm Macquarie Group – who cited a slowdown in the theatre business as summer comes to an end. Analyst Chad Beynon said:

The company was able to avoid filing for bankruptcy during COVID by raising capital ($2 billion of liquidity at 2Q21) and refinancing some of its debt, but leverage still remains an issue.

We all know fundamentals aren't all that matter in the meme stock biz though.
Ethan Roberts / Unsplash
Sep 012021
📈

AMC jumps on retail momentum

AMC rallies a further 9% on Tuesday as renewed retail trader interest drives up the meme stock momentum.

Online platforms like Reddit’s WallStreetBets have been littered with mentions of the stock, and prices are up over 28% for the week. Ihor Dusaniwsky, managing director of S3 Partners, weighs in on the craze:

Retail trading and momentum is now a relevant facet of daily trading. It moves prices and institutional investors take notice.
Aug 252021
🎉

Meme mania makes a comeback

After a quiet few weeks from the meme stock mania crowd, the action picks back up on Tuesday as retail traders got busy, sending AMC up over 20%.

After weeks of flat trading and slow but steady losses, a bunch of retail trader fan-favorites saw their prices soar on Tuesday as online platforms like Reddit’s WallStreetBets came alive with chatter on the stock. The meme stock market had its best day since its last rally in early June – the OG meme stock GameStop (GME) took its place as the leader of the pack soaring 27%, closely followed by the popular AMC and its gain of 20%. Short interest in AMC has remained heightened with around 28% of its shares sold short, but short interest in GameStop (GME) has sunk from 100% in January to around 10%. The hype spread to other popular meme stocks, with recently-public Robinhood (HOOD) among the top mentions on WallStreetBets and lifting over 9% on Tuesday and popular Clover Health (CLOV) lifting just under 5%. Ed Moya, senior market analyst at Oanda Corp, gave his two cents:

It seems this is retail jumping back in on their favorite trades after last Friday’s options expiration. Short interest seems to be a non-factor for both AMC and GameStop, so this move is just retail jumping back into call options.

The meme stock market has surged over 50% this year, with AMC up nearly 2,000% since January.
Aug 242021

High hopes as FDA approves Pfizer vaccine

As the Pfizer vaccine gets fully approved by the Food and Drug Administration (FDA), hope for the entertainment industry rises and AMC gets a boost of just under 7%.

The Delta variant has gotten a lot of investors worried about the future of the entertainment sector, but things started looking up this week after the full approval of Pfizer’s COVID-19 vaccine by the FDA – feeding hopes that higher vaccination rates will mean more people out to the movies. AMC ended Monday up just under 7%, fuelled by an uptick in retail trading action and chatter on WallStreetBets.
Aug 202021

AMC faces the Delta variant

AMC ends Thursday down over 7% as Delta variant uncertainty causes concern for re-opening sectors of the economy like theatre, not helped by a low price target from Citigroup.

Shares of meme-stock AMC Entertainment started the week with a bang after a successful premiere weekend, but things took a turn for the worse as concerns over the rapidly spreading Delta variant grow – causing uncertainty for sectors like hospitality, movie theatres, and travel, which are just starting to bounce back from the pandemic.

In what you would think would be the good news of the day, Citigroup lifted its price target on AMC shares. However, the price target was raised from $3.70 to $5, meaning the analyst expects AMC to lose over 85% in the next year, citing AMC’s $11 billion debt load and a rise in at-home theatre.

AMC ended the day down 7.47% at $33.82.
Liuba Bilyk / Unsplash
Aug 172021
🎞

AMC's big box office weekend

AMC is making headlines again, but this time it’s an actual movie boosting the stock, rather than the reddit crowd. Strange times...

We know it’s usually the online army sending AMC soaring, but the price lifted just under 7% on Monday after its new movie, Free guy, did better than expected in its first weekend at the box office – proving that Ryan Reynolds as a leading man is all it takes to get people back to the big screen. A lot of films have been released simultaneously on streaming services and in cinemas since COVID, but Free Guy was not one of them, hitting the screens 45 days before it goes online which likely boosted viewing numbers. The film grossed $28.4 billion in the U.S. in its opening weekend,

Reddit rallies are often the cause of AMC increases, but its core business has been going through a massive revamp that has led to impressive fundamentals behind all the fanfare. The company is rolling in revenues, having released some impressive earnings and turning its company from a brick-and-mortar company to an online giant. In fact, one investor feels so good about the future of the stock that he has tripled his stake in the company. Jim Simons of hedge fund Renaissance Technologies, one of the biggest and best-performing in history, recently upped his investment from just over 500,000 shares to 1.8 million shares. Simons is obviously of the go big or go home mindset.

AMC closed Monday up 6.63% at $35.69.
Jul 212021

AMC taking back its crown?

Meme-stock darling AMC is back in the spotlight, reclaiming its place among TradingView’s top gainers on Tuesday with a jump of nearly 25% on the back of heavy volume.

After a lackluster month, shares of Reddit fan favorite AMC Entertainment saw their biggest jump since the beginning of June, surging 24.5% as high volume in the late session spiked prices. After seeing parabolic gains in May and June, July saw the price fall just under 40% before Tuesday’s jump. AMC stock was the second most mentioned on WallStreetBets over the last 24 hours, up 155% with 374 mentions. Shares ended the day at $43.09 after reaching highs of $44.39, and it was the second most actively traded stock on the U.S. market with trading volume around 166 million shares.

AMC has been relying on its meme stock status to bring in capital as it waits for the entertainment sector to liven up post-COVID, and some of the excitement could be thanks to steps the company has taken to make the most of its re-opening. The entertainment company said after market close on Monday that it would be opening two more theatre locations in the L.A. area, and last week it announced its second consecutive weekend attendance record post-reopening. The news points to the potential recovery of its underlying business, which it needs after investor outrage forced the company to table a recent share sale vote.

As of Monday’s close, around 75.84 million shares of AMC were sold short - about 15% of its float.
Jul 162021
📉

AMC's bear run continues

Shares of AMC fall 15% from their record high on Wednesday as the meme stock momentum fades, although they regain some ground on Thursday trading.

A bunch of retail fan faves have been in a slump this month, with AMC down 33% for July, Clover Health losing 37%, and GameStop down over 20%. The movie theatre chain fell 15% on Wednesday to close at $33.43, down over 50% from its early June high of $72.62, although it regained some ground with a jump of 7.69% the next day.

The declines come on the back of fears that the day-trader frenzy that took over the market during lockdown might be losing steam – there’s been a decrease of about 30% in retail stock trading, according to Goldman Sachs. While the downturn doesn't take away from the astronomical gains meme stocks have made this year, it does indicate that investors weren’t too impressed with turnaround plans from firms like AMC and GameStop.

Retail flows overall have been fairly healthy over the past couple of weeks, though we’re clearly seeing a moderation in buying among the traditional meme names like AMC,

said Eric Liu, co-founder and head of research at Vanda Securities.

AMC is still up over 1,500% this year though.
Jul 072021

AMC bows to pressure, cancels share sale

It’s volatility central as AMC jumps 4% in the first hour of Tuesday trading before closing the day down 3.85% after the meme stock bows to shareholder pressure and cancels its ambitious share issuance plans.

Shares of the meme stock saw some positive pre-market action, bouncing 4% in the first hour of trading yesterday on news that AMC had cancelled plans to ask shareholders for permission to issue up to 25 million more shares, which could have been sold to raise more than $1 billion at Friday’s closing price. The entertainment company announced plans to seek approval for the share issuance on June 3, as a way to benefit from its astronomical, social media-driven gains (though in fairness, it did so with a firm warning that its price wasn't based on any solid business foundations, so perhaps the decision wasn’t that surprising after all.)

Shares sank 17% on June 3 after the original announcement, as the Reddit crowd made their objections heard. At this point, that crowd owns around 80% of AMC, so CEO Adam Aron didn't have much choice but to pay close attention. Aron credited his shareholders when he announced the decision on Twitter.

It’s no secret I think shareholders should authorise 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split,

he wrote.

His loyal fans rejoiced.

Adam Aron took the one thing that was dividing apes and squashed it! KING SILVER BACK BABY!!!!!

wrote user zv5000.

Will social media popularity be enough to get the company through though?
It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split. So, we’re cancelling the July vote on more shares. And no more such requests in 2021.
Jun 042021
⛔️

Reality sets in for AMC

Is the meme stock madness over? AMC sees some steep losses following its recent rally as investors are less than impressed its share sale announcement, sending stocks down nearly 25% toward the end of the week.

AMC had a few shock announcements for investors last week, who it turns out may have had enough surprises for one year. The meme stock began to see its gains pared toward the end of the week as AMC announced that it planned to sell 11.5 million shares, only to then tell everyone a couple hours later that the stock offering had been completed and had raised $587.4 million in additional capital. This marks the company’s second share issue in three days after it sold 8.5 million shares to Mudrick Capital on Tuesday. After its Reddit-led rally earlier this year, the theater company saw some more impressive gains earlier in the week with a bounce of almost 100% on news that a shareholder connection platform had been created.

That wasn't all the company had to say though – AMC also basically backed what people have been saying about it for a while: that the soaring share price has no connection whatsoever to the businesses fundamentals and that investors could lose their cash. Well, maybe not in exactly those words, but the gist was there.

We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last. Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment

the company said.

Either way, at least it’s managing to swing a profit from its rise to fame, and it certainly keeps things interesting for those of us watching at home.
Jun 032021

AMC brings out the popcorn

AMC decides it's time to reward all of its hard-working retail investors, and announces that anyone who’s got some skin in the AMC game will now be getting free popcorn! Excitement sends the share price popping by almost 100%. Who says there’s no such thing as a free lunch? If by lunch, you mean a tasty puffed corn treat, obvs.

It’s no secret that AMC Entertainment would not be where it is today if it weren't for its loyal flock of online retail trader fans – and now the theater chain has decided to throw its investors some love. The company said on Wednesday that its retail investors would get a free large popcorn with every visit, and also announced the launch of AMC Investor Connect. The meme stock has long since passed the point at which institutional investors became outnumbered by individual ones, and retail shareholders now own more than 80% of AMC stock, so it’s about time they opened up the dialogue.

Investors were thrilled, and the online support strengthened, sending shares of AMC up 95% on Wednesday and surpassing GameStop’s market cap – causing short-sellers a loss of $2.8 billion, bringing their year-to-date losses up to about $5 billion. AMC shares are now up a cracking 2,850% for the year alone, bringing its market cap to over $31 billion.

Grab the popcorn and let’s see what happens next.
Jun 012021

Profit power

In the latest in a series of capital raises for the struggling company turned meme stock, AMC makes use of its recent rally to sell 8.5 million shares to an investment firm, sending prices soaring another 22%.

Following AMC’s recent rally at the hands of its Reddit supporters, the movie theater operator is selling 8.5 million shares to investment firm Mudrick Capital. The company announced on Tuesday that it raised $230.5 million through its agreement with the investment firm, and plans to use the proceeds to buy smaller movie theater chains that have struggled during COVID.

On the same day the deal was announced, Mudrick Capital promptly went on to sell all of the AMC shares it had just bought, disposing of its stake in the company after concluding that the stock waas overvalued due to the recent wave of trader enthusiasm. This wasn't the first time the investment company had profited from betting on AMC – it lent $100 million to the company last year when cinema shutdowns were taking place, and took shares as a fee for the loan. Its share sales netted together so far have led to $200 million in profit for the fund.

Given that AMC is raising hundreds of millions of dollars, this is an extremely positive result for our shareholders. It was achieved through the issuance of only 8.5 million shares, representing less than 1.7% of our issued share capital and only a small portion of our typical daily trading volume,

said AMC CEO and President Adam Aron.
May 262021

AMC on the up

The online trading troops are giving some love to their favorite meme stocks on social media, sending AMC up over 33% in two days.

AMC jumped around 20% on Tuesday to reach highs unseen since its spectacular rally at the end of January as investors shifted focus back onto retail stocks. Other fan favorites also got some love, with GameStop ending the day up 16% and Koss Corp seeing gains of around 20%. There were over 200 million shares of AMC traded on Tuesday, making it the second-most traded stock (with a value over $1) on the day.

There have been thousands of comments pouring onto social media over the past couple of days as investors urged each other to hold or buy more AMC shares with the hashtag #notapenny, hitting over 17,000 posts by Tuesday afternoon. In comments all over platforms like Reddit, traders have been celebrating the rallies; and there’s been speculation that recent gains may already be pushing bearish investors to unwind their bets, leading to a short squeeze... which is what sent AMC shares soaring back in January.

When looking at the comments themselves, there’s a clear desire for a short squeeze either today or very soon,

said Travis Rehl, the founder of social media analytics platform HypeEquity.
May 142021
🎬

The reddit army comes for AMC

Remember Gamestop? Well brace yourselves, because the redditers are back for more. This time it’s AMC Entertainment, which is soaring as retail investors show the #AMCSqueeze hashtag some love, driving the stock price up over 35% for the week.

Looks like we’ve got another rally on our hands. Last Thursday was a big day for AMC stock as the #AMCSqueeze hashtag flooded Twitter and Reddit and prices jumped 23% in a single day. The stock dominated chats on the platform as retail investors once again called for a short squeeze on the stock, replacing Dogecoin as the hottest trend around.

We’ve seen this kind of action from the Reddit army before: coming together to buy and hold shares of a specific stock, usually targeting those shorted by hedge funds, in order to screw over the short sellers. AMC is a Reddit favourite, as is GameStop, and the names of both were on everyone’s lips last week after a Robinhood blog post said that users can now exercise options contracts on its app. GameStop spiked nearly 14% on Thursday, surfing on the back of the AMC trend.

In the last week there have been around 133,000 Reddit interactions for the term “AMC”, according to Facebook’s CrowdTangle data tool.

The jump came at a good time for the firm, which recently completed the 43 million shares at-the-market equity offering they announced in April, bringing in a sweet $438 million of fresh cash for the company to pay off some of its debt and weather the COVID storm.

AMC reported a net loss of $4.6 billion in 2020 and revenue dropped 77.3% over the past year, an illustration of how seriously the company was impacted by COVID. As fun as it is to trend on Twitter, it’s a canny company that can translate 15 minutes of fame into a genuine comeback.

Retail demand for AMC shares continues to elevate the share price, and it is trading at a multiple unrelated to the company’s fundamentals

said Wedbush Securities’ Alicia Reese.

That said, AMC is smart to capitalize on the retail interest and sell its shares at an inflated price tag, particularly if it uses the funds to reduce its debt
#AMC fam! Today #WallStreet is going to do everything they can to prevent the #AMCSqueeze. We gotta HOLD and Buy The Ask. Invite your friends and family to join the battle. #AMC100K
May 102021

AMC on the rebound

AMC Entertainment ends the week on a high, skipping just under 6% on earnings that missed expectations but gave us a sneak preview of what the market seems to think could be sunnier days to come.

The firm reported first quarter losses of $567.2 million, or $1.42 per share, an improvement from the loss of $2 billion from the same quarter last year. Sales totaled $148.3 million, down from $941.5 million in Q1 2020, mostly because of the wacking great non-cash impairment charges faced by movie theatre chains as Covid forced closures around the world.

The report wasn’t a huge shock to investors or analysts as the company gave a preview of what Q1 figures would look like the week before, anticipating a drop in sales of $148 million, compared to $941 million a year ago. AMC also announced plans to sell up to 43 million share in a so-called “at the market” offering. As of the end of Q1, the group was operating 585 theatres across the U.S. at a capacity of up to 60% and represented around 99% of domestic theatres and 27% of international theatres. Investors and analysts are keen to know when those theaters might be full enough to boost AMC’s revenue back to anywhere near previous levels. Shares have pretty much been on the decline since the start of the pandemic though, losing 5.18% in the past week.

The company didn't provide a specific forecast for Q2 or full year 2021, but CEO Adam Aron did address leftover liquidity concerns.

“Strengthening AMC’s liquidity position and balance sheet remains very high priorities, and we have been active across the board. Over the past five months, AMC has raised right around $2 billion dollars in fresh equity and debt capital, including the conversion of $600 million of convertible notes into equity at a price of $13.51 per share,”

he said.

Over the past thirteen months, AMC has raised approximately $2.9 billion of gross cash proceeds from new debt and equity capital, secured around $1.2 billion of concessions from lenders and landlords, obtained more than $150 million of assistance from European governments, and generated more than $80 million from asset sales.

"Taken together, we have made well more than $4 billion of progress from our implementing a myriad of capital actions to help us make it through this global storm. As we look ahead to the remainder of 2021 and beyond, AMC remains focused on continued bold actions, in executing our strategies both operationally and financially, as we work to recover from the impact of COVID-19.”
Mar 232021

Can AMC Entertainment stay afloat?

Struggling cinema company AMC Entertainment crashes by over 15% as news hits that Disney will launch two of its highly anticipated new films on Disney+ the same day as their movie theater release.

AMC has had a rough ride of it since COVID hit and we all stopped leaving the house, and in December the firm warned that it would go bankrupt in January without more funding. The movie theater chain lost almost $4.6 billion (enough $$ for a 65 million year subscription to Disney+) on 77% less revenue than it generated in 2019. The numbers aren’t looking good.

In a last-minute reprieve, the company secured $917 million in investment capital at the end of January, and in yet another surprise plot twist, found itself the latest target of the Reddit amateur trading army that had just taken up GameStop, sending prices skyrocketing more than 300%.

However, COVID aside, AMC still has to compete with streaming services, whose popularity (and profits) have ballooned during lockdown. Netflix saw annual revenue hit a whopping $25 billion in 2020, while Disney gained $32 billion in market value in December 2020 with shares jumping 12% on news that Disney Plus subscribers were expected to triple by 2024.

Premium content is now the name of the game and Studios are also becoming increasingly OK with bypassing cinemas. Warner Media debuted Wonder Woman 1984 in cinemas and on HBO Plus at the same time on December 16, 2020, and the studio has said it will do the same dual-viewability for all its films this year. This week it was announced that two of Disney’s flagship films for 2021, Black Widow and Cruella, will be available online for just $7 a month subscription, and the firm has now begun a complete top-down reorganization to prioritize streaming after a successful pay-per-view run with Mulan last year.

So even though AMC announced last week that it would open 99% of its U.S. cinema locations by March 26, it could still struggle to fill seats when the alternative is sweatpants and snacks from the comfort of your own couch. And as well as markedly lower levels of traffic, the company will also have to deal with higher COVID-related costs to maintain cleaning and safety standards and the pressure that will put on its profitability going forward.

The other option is acquisition – with some far-fetched forecasters out there even suggesting that Disney could buy AMC itself. We’re not quite there yet – but the way things are going, it might only be a matter of time...