AMC Joins Movie Theater Stock Rout
AMC Entertainment Holdings
joined a movie theater stock rout on a bad day for the broader market on Monday morning. Fears about rising Covid-19 cases overshadowed another positive box office opening.
AMC stock (ticker: AMC) was down 6.2% to $32.80 in Monday trading—paring losses from an intraday low of $31.15. Shares of the original meme stock
(GME) were wobbling up and down around noon EDT. AMC is also a meme stock—meaning its day-to-day trading activity often has more to do with social media chatter, options and momentum trading quirks, and short seller activity—but its movie theater peers were also down on Monday, possibly reflecting concerns about what a return for Covid-19 restrictions may mean for such companies.
stock (IMAX) was off 2.8% to $16.30 while
stock (CNK) was down 5.2% to $15.03. Shares of
(CINE.L), which owns Regal Cinemas among other chains around the world, closed down 10% in London trading.
Fears about a resurgence in Covid-19 cases finally seemed to spook the broader market. The S&P 500 index was down 1.7% and the Dow Jones Industrial Average was down 821 points, or about 2.4%. Covid-19 cases are up 34% globally over the past two weeks, according to The New York Times.
The move for theaters overshadowed Space Jam: A New Legacy, which managed a $31.7 million domestic opening, according to media reports, beating out the second weekend for Black Widow at $26.3 million. The film is the best Warner Bros. opening so far this year, edging out the early April opening for Godzilla vs. Kong at $31.6 million.
Like its Michael Jordan-led predecessor, the new Space Jam iteration starring basketball superstar LeBron James received mostly negative reviews from critics, but has won over more fans in the user score section on review aggregator site Rotten Tomatoes. It also managed that box office gross despite temporarily streaming for no additional cost to HBO Max subscribers, like all 2021 Warner Bros. films; Disney+ is charging subscribers a $30 premium fee for access to Black Widow before October.
If Monday’s drop holds, AMC stock’s recent slide will extend to 44% since it closed at $59.26 on June 18.
Write to Connor Smith at [email protected]