AMC Stock Dips 8% in Largest Decline Since Early November Amidst Ongoing Industry Challenges and Financial Maneuvering
AMC Entertainment Holdings Inc. experienced a significant 8% drop in its stock value on
Tuesday, marking its steepest daily decline since November 9, when it plummeted by
13.7%. The well-known movie theater chain, often highlighted as a meme stock, is
heading towards a two-day downturn, following a 3.6% fall in Monday’s trading session.
Despite reporting third-quarter results earlier this month that exceeded expectations
and announcing a shift to profitability for the second consecutive quarter, AMC's
outlook remains cautious.
AMC CEO Adam Aron, in a recent earnings call, expressed concerns about the short-
term effects of the writers’ and actors’ strikes, anticipating challenges for AMC in 2024.
However, a provisional agreement was reached by the Screen Actors Guild-American
Federation of Television and Radio Artists with studios shortly after his comment, and
Hollywood writers concluded their strike in September.
Analyst firm B. Riley Securities recently adjusted its domestic box-office forecasts for
2023, 2024, and 2025 downwards, attributing this revision to the strikes' enduring
impact, as noted by analyst Eric Wold. The firm reduced its box-office predictions,
setting a neutral rating for AMC. FactSet's survey shows a mixed sentiment among
analysts, with four maintaining a hold rating and three recommending a sell.
Additionally, AMC has taken steps to strengthen its financial position. Earlier in the
month, the company filed for a sale of up to $350 million in common shares “at the
As stated in an SEC filing, the proceeds are intended for enhancing liquidity, managing
debts, and other corporate purposes. CEO Adam Aron has been vocal about AMC's
ongoing efforts to manage its debt and liquidity challenges. This follows a successful
equity offering in September, where AMC raised about $325.5 million.