Entertainment Holdings (AMC) stock surged 33% on Monday, closing at $5.85, following a blockbuster opening weekend for “Barbie” and “Openheimer,” and the first trading day after the decision against the Movie Theater Series Board’s blocking stock conversion.
During the opening weekend, “Barbie” made a domestic box office revenue of $162 million, making it the biggest opening weekend for any female-directed film. According to The Hollywood Reporter, “Openheimer” earned $82 million during the same weekend.
This surge is the latest peak of the rollercoaster ride for the company, which has nearly doubled its stock price from around $2 per share to memedom and back to a single digit.
“Barbie” and “Openheimer” event: How a film meme inspired ‘crazy, bizarre’ double feature.
“Barbie” boosts emotions
The series announced in a press release on Monday that AMC has had the highest theater attendance in its theaters in three years.
At the end of this week, approximately 8 million filmgoers visited AMC theaters worldwide, making it the most-watched week since 2019. The company rewarded those patrons who took a chance on the unexpected pairing of anticipated films with double features, as 87,000 members of their Stubs rewards program booked a double bill.
AMC Theatres also saw its second-largest concession sales in company history on Saturday, trailing only behind the opening Saturday for “Avengers: Endgame.”
Adam Aaron, AMC’s chairman, and CEO stated in the release, “Both ‘Barbie’ and ‘Openheimer’ have demonstrated that well-made, well-marketed films can play to audiences very successfully on the same weekend and both can be major successes.”
Court blocks stock conversion
Another factor in the stock surge was a decision by the Delaware Court of Chancery, which prevented the company from converting its equity stock into common stock.
The conversion was part of a settlement to resolve a lawsuit brought against the company by the Allegheny County Employees’ Retirement System, claiming that the board breached its fiduciary duty.
The plan was rejected by Delaware Chancellor Morgan Zurn, who stated that the plan was not fair to shareholders not included in the lawsuit. Nearly 2,850 alleged shareholders had reached out to the court on the matter.
In response to the ruling, Aaron emphasized his conviction that the company needs financial flexibility.
“AMC should be positioned to raise equity capital,” Aaron tweeted on Sunday. “I emphasize once more, safeguarding the long-term prosperity of our shareholders necessitates our capability to raise capital through equity sources.”
Meme stock mania
AMC was one of the companies that rose in the 2021 meme stock market, where retail investors bought stocks heavily shorted by institutional investors.
In June 2021, the stock reached an all-time high of $72.62, allowing the company to raise capital and avoid bankruptcy. Since then, AMC’s share price has experienced significant volatility, trading at $5.85 per share at the market’s close on Monday, down nearly 23% from its high this year.
AMC’s Path Forward
Discuss CEO Adam Aaron’s statement regarding the need for financial flexibility. Explore the strategies and plans AMC may adopt to overcome challenges and position itself for sustainable growth in the future.
Analyst and Investor Reactions
Include expert opinions and investor reactions to the recent stock surge driven by “Barbie” and “Oppenheimer” openings. Share insights from industry analysts and discuss how these reactions may influence AMC’s stock performance going forward.
Summarize the key points discussed in the blog post and conclude with a thoughtful reflection on the overall impact of successful movie openings on AMC’s stock performance. Emphasize the importance of continued industry recovery and innovative approaches to engaging audiences in driving the company’s success.