Why AMC Stock Tops the Market on Tuesday

What happened

AMC Entertainment Holdings (NYSE: AMC), the reigning cinema operator king, was treated like royalty by investors on Tuesday. On the back of a rather encouraging update from the company, they pushed its share price up nearly 4% on a down day to S&P 500 index.

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After the market closed on Monday, AMC published a new update on moviegoer traffic to its theaters. The company said in a press release that last weekend’s ticket revenue was up 15% from the same weekend in 2019. That’s impressive because the latter was “before the times”, that is, before the coronavirus swept across the globe.

In terms of foot traffic, more than 4.9 million movie buffs walked to the AMC theater to see a movie last weekend. We are now into the blockbuster summer season, an ever-critical period for film producers and exhibitor.

AMC benefited from a strong one-two hit at the box office. The newest installment in the storied runaway dinosaur franchise, Jurassic World Dominionsopened that weekend with a total gross of over $145 million in the US, making it the No. 1 for the period.

No. The obvious 2 is a long-lasting popcorn war movie Best Weapon: Maverick. In its third week of release, it continued to attract audiences and grossed nearly $52 million over the weekend.

Now what

AMC doesn’t hesitate to point out — accurately — that Hollywood’s release schedule in the coming weeks is quite interesting. Walt DisneyPixar’s latest animated film, space story light year, the beam went down this weekend. Exciting and expensive biographical film Elvis following the end of this month, as with the latest saga of everyone’s favorite Norse god superhero, Thor: Love and Thunder.

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Eric Volkman had a position at Walt Disney. The Motley Fool has the position and recommends Walt Disney. The Motley Fool recommends the following options: January 2024 long call $145 at Walt Disney and January 2024 short call $155 at Walt Disney. Motley Fool has disclosure policy.

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