On Wednesday, AMC theaters rose more than 8.8% to $2.96
Although the reason for the increase is unclear, AMC Cinemas (AMC.US) stock price rose for the second day in a row. The Zhitong Finance App learned that according to Dow Jones market data, AMC theaters rose more than 8.8% to $2.96 on Wednesday. The stock jumped 10% yesterday, the best two days of stock price performance in more than six months. By contrast, the S&P 500 dropped 0.58% in Wednesday's trading.
On April 9, AMC CEO Adam Aron gave some insight into the company's state of affairs. In an interview with the media, he said, “I personally think it is unimaginable for AMC to have to restructure and file for bankruptcy protection like Regal Cinemas. One thing I'm very proud of is that AMC was in a very stable state before the start of the COVID-19 pandemic.”
However, despite the recent rise in stock prices, this is not enough to get the movie theater chain out of its decline. The stock price has fallen 53% since this year, and it continues to face heavy debt pressure and the consequences of actor and screenwriter strikes.
Last month, AMC announced that it would sell up to $250 million of shares through a public market offering to increase liquidity, a measure after the “slump in the first quarter.”
At the end of January 2021, AMC Cinemas became famous during the “air war” launched by an army of retail investors to short Wall Street hedge funds. GME.US (GME.US) led many “influencer stocks” to skyrocket at the time, forcing hedge funds to close short positions. At the time, the “influencer stock” frenzy had almost as much impact on the market as AI had recently, but over the next few years, the stock prices of these companies fell all the way down. GameStop closed down 0.68% to $10.3 on Wednesday. At its peak, it once exceeded $300.