AMC (NYSE:AMC) just reported earnings and they were the company’s “strongest quarterly results in two full years.” For starters, revenue came in at $1.17 billion. That was slightly above consensus estimates of $1.16 billion. What’s more, the company reported an adjusted loss per share of 11 cents for AMC stock versus an expected consensus loss of 16 cents.
That’s not all, however. On top of the results, a claim from AMC Entertainment CEO Adam Aron has the #AMCArmy rallying behind the movie-theater chain. During the earnings call, Aron stated the following:
“If you exclude index funds who have no choice, but to own and hold AMC shares, individual retail investors would seem to own more than 90% of our officially issued 516 million shares as of today. Indeed, as it is often said about AMC on Twitter, retail owns the float.”
Here’s what else investors should know about AMC stock today.
CEO Adam Aron Claims Retail Owns 90% of AMC Stock Public Float
Shares of AMC stock are included in several indexes who “have to” incorporate the company. These indexes include the Vanguard Total Stock Market Index (NYSEARCA:VTI) exchange-traded fund (ETF), which seeks to track the performance of all U.S.-listed stocks. AMC is also included in the iShares Russell 2000 ETF (NYSEARCA:IWM), which tracks U.S. stocks ranked 1,001 to 3,000 in terms of market capitalization.
AMC has developed a major cult following among financial communities like Reddit’s r/WallStreetBets and on Twitter (NYSE:TWTR). As such, fans were quick to come together and celebrate the heavy retail positioning in the movie-theater chain after Aron made his announcement. One loyal Twitter user noted:
The #AMC apes own the company
Time to recalibrate your minds and let that sink in
APES OWN THE COMPANY
It's not a slogan, it's a fact
You have more power and control than you think
Watch movies @ #AMCTheatres + buy $AMC products + think of the stock as a savings account…
— BAM Investor (@BAMinvestor) March 2, 2022
So, it seems retail sentiment has gotten a boost following the company’s earnings. However, a company’s fundamentals ultimately drive its stock price in the long term.
What’s Next for AMC?
During the earnings call, Aron hinted that a collaboration with Uber (NYSE:UBER) may come to fruition soon. Aron stated the company “will launch a food delivery program in the beginning as early as the second quarter of this year” in partnership with Uber Eats.
Later this month, AMC theater-goers will also be able to pay for their tickets with cryptocurrencies like Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD). The century-old company teamed up with crypto payment processor BitPay to utilize this feature.
Finally, AMC is planning to bring its AMC Theatres Perfectly Popcorn to grocery store shelves. Aron disclosed that grocery and convenience stores may start carrying the company’s popcorn as soon as this fall.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
