AMC Entertainment Holdings
stock jumped after the move theater firm beat Wall Street’s expectations for the first quarter.
The company reported a non-GAAP net loss of 52 cents a share and revenue of $785.7 million. We have 2021 constant currency basis, revenue hit $798.4 million. Analysts polled by FactSet had forecast a non-GAAP net loss of 63 cents a share and revenue of $743 million.
AMC reported attendance of about 39.1 million, up from 6.8 million in the first quarter of 2021. CEO Adam Aron cited recent box office successes including Spider-Man: No Way Home, The Batmanand Sonic the Hedgehog 2 as proof consumers are interested in theaters.
“When Hollywood releases films that moviegoers want to see, people flock to cinemas in huge numbers to watch movies where they were designed to be seen, in theatres, on the big screen,” Aron said.
AMC stock was up 4.4% in after-hours trading following the release. Shares dropped nearly 9% during Monday’s session, which brought their year-to-date decline to about 54%.
AMC stock surged in March along with fellow Reddit favorite
(GME). Both stocks garnered cult followings on the social media platform, especially after shares of highly shorted firms surged in January last year amid heightened retail investor interest. Both stocks still have a following online among users who believe the stocks can return to nosebleed levels and squeeze funds betting against them.
Both firms have capitalized on such enthusiasm by selling shares to shore up their balance sheets and invest in new ventures. Even stocks were briefly back in favor in March, not long after AMC acquired a 22% stake in
(HYMC), which has gold and silver deposits in Nevada. After AMC’s investment, the mining firm successfully sold more shares and raised cash.
Aron has engaged with retail investors online and reposted their memes. During recent earnings calls, he’s taken questions submitted by shareholders and even implemented suggestions such as accepting cryptocurrencies. AMC plans to take questions on its call, scheduled for 5 pm ET.
Even stocks haven’t been spared amid the broader market rout in recent weeks. AMC stock is down 56% since March 28, while Hycroft stock is down 48%. GameStop stock is down 47% since March 28.
For the AMC faithful, the report is a chance for even stocks to once again trend on social media. AMC kicked off a substantial rally in the weeks following its first-quarter report in May 2021, but such gains were short-lived and came against a much friendly backdrop for stocks.
This time around, the news is initially positive. Just keep in mind AMC has a history of wild intraday moves.
Write to Connor Smith at firstname.lastname@example.org