AMC stock was making a lot of noise on Tuesday after a great box office weekend for “A Quiet Place.” AMC Entertainment (AMC) saw its stock rise over 20% in trade on Tuesday. It’s good news for the world’s largest theatre chain, which is struggling to recover from the coronavirus outbreak.
Watching my AMC stock rise makes me wanna buy more but I'm broke lmaooo hold for me pls pic.twitter.com/lNCQKWpqjZ
— marz ☄️ (@marsinspaces) June 2, 2021
The increase comes after AMC announced a $230.5 million fundraising by selling 8.5 million shares to Mudrick Capital Management. The proceeds from the transaction would be used to purchase new theatre leases and “make investments to enhance the consumer appeal” of AMC’s existing sites, according to the company.
The money will allow us to be aggressive in going after the most valuable theatre assets, as well as make other strategic investments in our business, said Adam Aron, AMC’s CEO, in a statement on Tuesday. A request for comment from Mudrick was not immediately returned. AMC’s stock had already been skyrocketing, owing in part to Reddit’s popular WallStreetBets board, which recommended the stock last week as a way to punish short-sellers who bet against the company.
After a difficult year in the industry, the theater chain is attempting to regain its footing. In October 2020, the corporation warned that it might run out of cash by the end of the year. However, owing to Redditors and the return of blockbuster movies — and moviegoers — to theaters, its fortunes changed.
At least for the time being
With the pandemic still spreading and streaming now an option for watching even new blockbusters at home, movie theaters face an uphill battle to entice viewers back into seats. “A Quiet Place Part II,” a horror picture directed by John Krasinski and starring Emily Blunt, has the highest opening weekend of the season so far, with $48.3 million in three days over Memorial Day weekend in North America.
That might signal the start of a busy summer season for AMC theaters and Hollywood in general. In the coming months, potential blockbusters include Marvel’s “Black Widow,” Universal’s next Fast & Furious film “F9,” and Warner Bros.’ “In The Heights.”
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With our increased liquidity, an increasingly vaccinated population, and the impending release of blockbuster new movie titles, Aron, the AMC CEO, added on Tuesday that it is time for AMC to go on the offensive once more.
AMC Entertainment Inc., through its subsidiary American Multi-Cinema, Inc., is the world’s largest theatre exhibition firm in terms of revenues and one of the major motion picture exhibitors in terms of theater screens operated in the United States. AMC has 200 theaters with 2,800 screens in 23 states in 1999. In 2000, AMC grossed almost $1,030 million in yearly ticket sales, making it the industry leader in the development and operation of multi-screen theatres.
Perspectives from the business
AMC Entertainment Inc. has been dedicated to providing the most enjoyable movie-going experience in the world since it first opened its doors in 1920. AMC Theatres has revolutionized the way consumers watch movies by turning the experience into an adventure along the way. With stadium-style seating, cutting-edge sound systems, and the megaplex as we know it today…
AMC Theatres continues to be a source of fun and leadership by upholding our values as a good presence in your community and our objective of delivering the finest quality movie-going experience. The news regarding AMC stock has spread everywhere like fire.