- AMC stock rallied 3.8% to $11.92 on Tuesday.
- GameStop stock did even better, up 6.7% to $126.17.
- AMC has gained ground to start the week on the back of positive attendance figures.
AMC stock was boosted on Tuesday due to a delayed response to positive attendance levels for Hollywood's summer blockbuster season. AMC management released the numbers for the June 9 through June 12 extended weekend on Monday, boasting of attendance revenue besting the same period in 2019 pre-pandemic by 15%. However, the market tanked on Monday due to heavier certainty that the US economy was headed for a recession. This is because Friday's headline inflation reading of 8.6% bested forecasts, and now the markets are betting on a "Volcker moment" similar to when Fed chairman Paul Volcker raised interest rates so high that he pushed the economy into a deep recession in 1982. On Tuesday though, investors gave into the good news of higher revenues and a positive blockbuster season.
Also read: Nvidia Stock Deep Dive: Price target at $205 on strong revenue growth
Now AMC stock investors await a decision by the Fed on Wednesday concerning interest rates. Will the Fed offer up another 25 or 50 basis point rate rise and buoy markets or will it try to crush inflation with a 75 or even 100 basis point increase?
CEO Aron impressed by high attendance for Top Gun, Jurassic Park sequels
In the statement to shareholders, CEO Adam Aron was enthusiastic about audiences' response to the first two major blockbuster releases. These are the May release of Top Gun: Maverick, starring Tom Cruise, and Jurassic World Dominion.
“It is so encouraging to see AMC’s admissions revenues topping those of the same weekend of 2019, prior to the pandemic which so depressed our revenues in 2020 and 2021," said Aron. "Clearly, we are seeing positive signs for a continuing recovery of the theatrical box office."
An important detail is that both inflation and ticket prices are way up, so topping revenues from three years prior seems fairly ordinary. AMC Entertainment, however, has had a miserable 2020 and 2021, so we will let them have this one. AMC said 4.9 million attendees came to AMC theatres during the four-day stretch.
"Having multiple blockbusters in theatres has helped push AMC to achieving another important milestone, beating admissions revenue versus the same weekend in 2019 by a wide margin," CEO Aron enthused. "There is a wonderful quote from Jurassic World Dominion that ‘Life finds a way.’ It is looking too that ‘Theatres find a way.’ ”
AMC stock may benefit from upcoming new movie releases
Besides the success of the new Top Gun and Jurassic Park series additions, AMC Entertainment has a raft of the new movie features it is counting on to boost summer revenue. Pixar’s Lightyear opens this coming weekend, which is already drawing a heavy focus due to one character's parents being in a same-sex relationship. Prominent conservative podcaster Ben Shapiro has said many religious parents will balk at taking their kids to the flick. Negative publicity often leads to popularity though.
Disney works to push a "not-at-all-secret gay agenda" and seeks to add "queerness" to its programming, according to executive producer Latoya Raveneau. Parents should keep that in mind before deciding whether to take their kids to see "Lightyear," which hits theaters this week. pic.twitter.com/9MNGlzFxCk
— Ben Shapiro (@benshapiro) June 14, 2022
