AMC Entertainment (NYSE:AMC) stock is in the green today following an encouraging tweet from CEO Adam Aron:
Avatar: The Way of Water keeps on rolling. My predictions were easily surpassed. This week, this blockbuster movie could exceed $600 million in domestic ticket sales and $1.8 billion globally. So much for the doomsayers doubting the enduring appeal of movie theatres. #CHOKEonTHAT https://t.co/Pabu985TJt
— Adam Aron (@CEOAdam) January 17, 2023
According to Box Office Mojo, Avatar: The Way of Water currently has a lifetime gross value of $1.903 billion, putting it at number seven on the Top Lifetime Grosses list. Of the $1.903 billion, $572.4 million can be attributed to the domestic box office while $1.33 billion is attributed to the international box office.
The new Avatar movie is just trailing behind Spider-Man: No Way Home, which has a lifetime gross value of $1.916 million. The first film of the franchise, Avatar, comes in first on the list with a lifetime gross value of $2.922 billion.
AMC Stock: CEO Adam Aron Encouraged by Avatar Sales
The performance of this highly anticipated movie marks an undeniable positive for AMC stock as moviegoers return to theaters. In addition, Avatar: The Way of Water has already exceeded Aron’s latest prediction of $1.8 billion globally this week.
2023 looks to be a better year for the box office than 2022 due to the release of several exciting movies. The first half of the year will bring films like Spider-Man: Across the Spider-Verse, Fast X, Guardians of the Galaxy Vol. 3 and John Wick: Chapter 4.
Meanwhile, AMC recently announced that it would reduce the price of its Perfectly Popcorn by 50% on Jan. 19 in celebration of National Popcorn Day. Executive Vice President and Chief Marketing Officer Eliot Hamlisch added the following about the news:
“It doesn’t get better than settling in for a fabulous film with a delicious bag of popcorn in hand at your favorite AMC Theatres location. National Popcorn Day is the perfect time for moviegoers and families to enjoy one, or more, of the hit titles in wide release at AMC Theatres across the country on January 19.”
AMC stock shareholders are hoping that this incentive can result in more movie ticket sales.
That said, under the surface, it appears that AMC is still dealing with difficulties. Last month, the movie-theater chain announced that it had raised $110 million of new equity capital through the sale of AMC Preferred Equity Units (NYSE:APE) to Antara Capital. The company is also seeking a special meeting to vote on converting APE to AMC and a 1-for-10 reverse split.
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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.
