However, since AMC split into two shares, the combined value of AMC and APE has hovered near $14. (AMC is trading around $8.60 and APE is around $5.20) Do the math and it’s down nearly 25% over the past few weeks. The price of AMC 1 share and APE 1 share is also about 50% lower than where AMC shares started in 2022.
what happened? The hype from AMC CEO Adam Aron seems unable to overcome the fact that theaters are in dire financial straits.
“Cineworld/Regal has filed for Chapter 11 of the Theater Bankruptcy Protection Act in the US and UK. Fortunately, AMC is in a very different situation. Thank you retailers for letting me source them! Thank you so much! You saved AMC,” Aaron wrote.
Moviegoers are also willing to hit the theaters for some truly massive blockbuster movie events, including the highly anticipated sequel to Top Gun, the latest installment in Jurassic World and the Marvel franchise, and children’s animated films. is. The U.S. box office has bounced back from the lows of 2020 and his 2021.
Add all that up, and it’s not hard to see why AMC remains in a somewhat precarious financial position. The company is expected to report a loss of about $638 million this year. However, in 2021 he’s down from a loss of nearly $1.3 billion. Also, sales are expected to see him jump nearly 70% to $4.3 billion.
But others in the industry seem to envy the fact that AMC has become a pop culture phenomenon.
Of course, Cineworld welcomed the liquidity of being a “memetic stock” like AMC, but we were never so lucky! said in the company’s bankruptcy filing:
It could be just sour grapes or old popcorn.
You can’t blame Aron and AMC for throwing their hands up and doing nothing to counter the fact that the economics of the movie theater business have arguably changed forever. Whether that means a rebound in stock prices is another question entirely.
Source: www.cnn.com
