AMC Entertainment (NYSE:AMC) just had its “best week ever” due to recent success at the box office, but will this be the best week ever for AMC stock?
Shares of AMC Entertainment erupted last Monday, July 24. At one point, the stock was up roughly 42% and ended the day higher by 33%. However, that was followed by a nearly 23% decline over a three-day losing streak.
AMC stock is off to another hot start on Monday, this time up about 8% on July 31 — the last trading session of the month. As we look toward August, investors are hoping the stock can run even further.
That’s as the Barbie and Oppenheimer movies have been home runs at the box office. Together, they have surpassed $1 billion in ticket sales.
CEO Adam Aron tweeted, “Wanting some good news from AMC? It doesn’t get any better than this. In addition to last weekend being the highest grossing AMC weekend in 4 years, the week of July 21-27 was the highest grossing for AMC in our entire 103-year history.”
In the firm’s press release, AMC said it had its “best week ever.”
That is “based on admissions revenue from July 21 through July 27 sets a new AMC record for its theatres in the U.S. and also sets a new record for all its theatres globally … The record week was bolstered by 65 U.S. AMC locations individually also recording their highest-ever box office weeks of all time, including an impressive 13 theatre locations in the Los Angeles market.”
Can This Fuel AMC Stock Higher?
The firm is on the right path, but it’s not out of the woods quite yet.
The weekend of July 20-23 was the “busiest weekend since reopening theatres after their pandemic.” Further, the most recent weekend of July 27 to 30 was the company’s “third busiest weekend globally since theatres reopened from their pandemic closures in 2020.”
Despite that, Aron reiterated some caution to investors. “Still, none of this changes that the year-to-date box office remains lower than that of 2019, or that there is uncertainty due to our having to cope with the potentially debilitating writers and actors strikes.”
All of this comes amid ongoing legal drama surrounding the AMC Entertainment Preferred Equity Units (NYSE:APE) — also know as “APE” shares.
Reportedly, “AMC Entertainment Holdings Inc. shareholders who negotiated a nine-figure settlement over the company’s APE preferred units — which a judge rejected last week in a surprise ruling — are urging the judge to swiftly sign off on a new version of the deal and let it take effect immediately.”
That’s as Vice Chancellor Morgan Zurn ruled to block the conversion of APE stock into AMC shares last week. The decision also blocked a $129 million settlement.
Legal issues continue to slow the company’s original plan, which included a reverse stock split and increasing its authorized shares.
For what it’s worth, the best week ever for AMC stock came in January 2021, when it rallied 277% from Jan. 25-29.
On the date of publication, Bret Kenwell did not have (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.
