AMC Entertainment Holdings
stocks jumped after the theater company moved beyond Wall Street’s expectations for the first quarter. The report came at a treacherous moment for meme stocks and the wider market.
The company reported a net loss of 52 cents per share without GAAP and revenue of $ 785.7 million. Based on the constant currency in 2021, revenue reached $ 798.4 million. Analysts polled by FactSet forecast a net loss of 63 cents per share other than GAAP 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 successes at the box office, including Spider-Man: No way home, Batmanand Sonic the Hedgehog 2 as proof that consumers are interested in theaters.
“When Hollywood releases movies that moviegoers want to see, people flock to theaters in large numbers to watch movies where they are designed to be watched, in theaters, on the big screen,” Aaron said.
Shares of AMC rose 4.4% in trading after business hours after the announcement. Shares fell nearly 9% during Monday’s session, bringing them down from about 54% since the beginning of the year.
Shares of AMC rose in March along with another Reddit favorite
(GME). Both stocks gained cult followers on the social media platform, especially after stocks of high-growth companies rose in January last year amid increased interest from retail investors. Both stocks still have online followers among users who believe stocks can return to levels they are not allowed to and squeeze funds by betting against them.
Both companies have capitalized on such enthusiasm by selling stocks to strengthen their balance sheets and invest in new ventures. Meme shares briefly returned to gains in March, shortly after AMC acquired a 22% stake in
(HYMC), which has gold and silver deposits in Nevada. Following AMC’s investment, the mining company successfully sold several shares and raised money.
Aron collaborated with small investors online and republished their memes. During recent earnings calls, he answered shareholder questions and even implemented proposals such as accepting cryptocurrencies. The AMC plans to answer questions in its call scheduled for 5pm Eastern Time.
Meme stocks have not been spared amid a wider market downturn in recent weeks. Shares of AMC fell 56% since March 28, while shares of Hycroft fell 48%. GameStop shares have fallen 47% since March 28th.
For AMC believers, the report is an opportunity for meme stocks to re-enter the trend on social media. AMC launched significant growth in the weeks following its first quarter report in May 2021, but such gains were short-lived and met with a much friendlier background for stocks.
This time the news is initially positive. Just keep in mind that AMC has a history of wild intraday moves.
Write to Connor Smith at [email protected]