AMC Entertainment (NYSE:AMC) stock is falling more than 3% today after data indicated that Taylor Swift’s concert film — Taylor Swift | The Eras Tour — generated ticket sales of between $95 million and $105 million in the U.S. and Canada over the weekend.
This past Saturday and Sunday marked the film’s opening weekend. AMC also reportedly generated another $30 million of ticket sales internationally during the period.
AMC is showing the movie, which includes highlights from Swift’s recent concert tour and other parts of her career, in its theaters in the United States, Canada and Europe. Additionally, the company is distributing the film to other theaters globally.
Assessing the Success of Swift’s Opening Weekend
Taylor Swift | The Eras Tour easily set a record for the highest domestic box office revenue of any concert film in its opening weekend. The previous record holder was reportedly Justin Bieber’s Never Say Never concert film, which was released in 2011 and generated $29.5 million in its first weekend.
On the other hand, though, the ticket revenue generated by Swift’s new movie looks set to fall below the midpoint of the $100 million to $140 million range bullish analysts had expected. That likely miss, combined with a “buy the rumor, sell the news” situation, is pulling AMC stock down this morning.
Indeed, shares of AMC are sinking today even though they already tumbled 13.6% on Friday. Meanwhile, the U.S. stock market is advancing sharply today.
What’s Next?
Moving forward, investors should try to gauge how much more successful Taylor Swift’s film will be — and how much that success will help improve AMC Entertainment’s overall financial situation. Additionally, investors should be asking whether the company will be able to use other, similar theatrical releases to boost its financial results and improve its balance sheet.
On the date of publication, Larry Ramer 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.
