Shares of AMC Entertainment (NASDAQ:AMC) stock are surging higher by over 7% after the company announced that the Easter Day weekend, which includes Friday, was its busiest weekend of the year. More than 3.6 million viewed a movie at an AMC theater from Friday to Sunday. In addition, the weekend was the company’s third busiest weekend since December 2019. Following AMC’s reopening in 2020, two out of three of its top revenue days occurred during Easter Weekend. Saturday marked AMC’s highest revenue day since the reopening.
“The success of THE SUPER MARIO BROS. MOVIE is yet another shining example of the desire by U.S. moviegoers to come to the movie theatre to be entertained,” said CEO Adam Aron. “I congratulate our friends at Universal and Illumination on the biggest movie of 2023 so far, and on creating and distributing a movie that is proving to be a huge hit with guests of all ages.”
AMC Stock Jumps Following “SUPER Easter Weekend”
The busy weekend has been driven by the release of The Super Mario Bros. Movie and other movies such as John Wick: Chapter 4 and Dungeons and Dragons: Honor Among Thieves. AMC added that moviegoers also loaded up on snacks and beverages, contributing to an all-time high for revenue during an Easter Weekend in the U.S. Furthermore, The Super Marios Bros. Movie collectible popcorn tin was especially popular among moviegoers. It sold out faster than any previous collectible the movie theater chain offered.
Despite the exciting news, the cost-to-borrow (CTB) fee for AMC is still at a sky-high 390.03%, according to Fintel, which is the same percentage as last Friday’s close. The fee rises when short seller demand is high and falls when demand is low. It can also signal a scarcity of available short shares. What’s more, a high CTB can influence short sellers to sell out of their positions in an attempt to escape the high fee. The increased fee is likely attributed to the shareholder approval of converting all AMC Preferred Equity Units (NASDAQ:APE) into AMC stock, which has been placed on hold pending a decision from Delaware’s Court of Chancery.
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.