The stock market tried to push higher on Monday and so did AMC Entertainment (NYSE:AMC). At one point in the session, AMC stock was down almost 4%. Shares closed the day up by 2%, however.
Some of today’s weakness could have been tied more broadly to tech and more specifically to GameStop (NYSE:GME). Shortly after the open, tech was under more selling pressure than the overall market. Meanwhile, GME was down roughly 5% at one point. For what it’s worth, GME stock closed down by about 4%.
There’s still a correlation between some of these stocks. However, AMC stock is finding some bullish momentum due to its own catalysts.
Specifically, today’s action came after CEO Adam Aron tweeted out some good news this morning. Aron noted new record sales for the company:
“AMC moviegoers continue to eat and drink well. Two weeks ago we set an all time record, with the highest weekly “Food and Beverage Revenues Per Patron” (FBRPP) in AMC’s 103-year history. On March 24, 25, 26 we set a new record again, for the highest ever weekend FBRPP. Wow!”
AMC Stock Could Use a Boost
This news is good for AMC stock. The company has been working hard to bring customers back into its theaters. It has also been looking for alternative sources of revenue. For instance, AMC recently expanded the “availability of its retail popcorn line” in partnership with Walmart (NYSE:WMT).
At the time of the deal, Aron added, “With the launch of AMC Theatres’ new line of microwave and ready-to-eat popcorn, AMC yet again makes good on a promise made to our moviegoers and our investors.”
However, it seems like AMC stock will need more than popcorn and strong food sales to jumpstart the share price. While shares are up 12% from the recent low, the stock is still more than 45% below the February high.
There has been a lot of volatility surrounding AMC stock following the drama with its proposed stock split and conversion of AMC Entertainment Preferred Equity (NYSE:APE), commonly referred to as APE stock. Issues surrounding this situation seem to have sapped AMC’s momentum.
Regardless of the outcome, I would expect this name to remain rather volatile in the spotlight, given its history.
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On the date of publication, Bret Kenwell 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.
