AMC Entertainment Holdings (AMC) stock experienced a thrilling 33% surge, closing at $5.85 on Monday. This exciting boost came after the blockbuster opening weekends of “Barbie” and “Oppenheimer,” and a pivotal ruling in favor of the movie theater chain’s board on stock conversion.
Record-Breaking Opening Weekends
The box office witnessed history in the making, as “Barbie” smashed records, amassing a staggering $162 million domestically. This incredible figure marks the largest opening weekend box office for a female-directed film in history. Following closely behind, “Oppenheimer” brought in an impressive $82 million during its debut weekend, as reported by The Hollywood Reporter.
The ‘Barbenheimer’ Phenomenon: A Crazy, Weird Double Feature
“Barbie” and “Oppenheimer” captivated audiences worldwide, creating a ‘Barbenheimer’ phenomenon that took the industry by storm. This movie meme-inspired double feature attracted the most people to AMC theaters in over three years. Approximately 8 million moviegoers flocked to AMC theaters globally over the weekend, making it the most attended weekend since 2019.
The company credited the success to the audience’s enthusiasm for experiencing both highly-anticipated films back-to-back. Notably, 87,000 of AMC’s Stubbs reward program members chose to indulge in this unique movie-going experience.
Concessions Sales Hit New Heights
AMC Theaters not only saw record-breaking attendance but also recorded the second-highest concessions sales in the company’s history on Saturday. The “Barbenheimer” Saturday concession sales only trailed behind the opening Saturday for “Avengers: Endgame,” showcasing the fervor of moviegoers eager to enjoy their favorite snacks alongside these cinematic treats.
AMC’s Stock Uptick and the Delaware Court Decision
The surge in AMC’s stock can be attributed to more than just the movie success. A Delaware State Court decision played a significant role in bolstering investor confidence. The court ruling prevented the company from converting equity stock into common stock as part of an agreement to settle a lawsuit filed by Allegheny County Employees’ Retirement System.
The lawsuit claimed that the AMC board breached its fiduciary duty. However, Delaware judge Morgan Zorn rejected the conversion plan, stating that it failed to consider the rights of shareholders not involved in the lawsuit. Over 2,850 purported shareholders expressed their concerns to the court regarding this matter.
AMC’s Need for Financial Flexibility
Reacting to the judgment, AMC Chairman and CEO Adam Aron underscored the necessity for financial flexibility. He expressed his belief that AMC must have the capacity to raise equity capital to protect shareholder value over the long term. Aron emphasized this point in a statement published on his Twitter account, highlighting the company’s commitment to ensuring a strong financial position.
AMC’s Journey: From Meme King to Resilience
AMC was one of the key players caught up in the 2021 meme stock market frenzy, where retail investors rallied behind stocks that were heavily shorted by institutional investors. The frenzy pushed AMC’s stock price to an all-time high of $72.62 in June of 2021, providing the company with much-needed capital and averting bankruptcy.
Despite the rollercoaster ride that followed, with the stock price sliding to $5.85 per share by Monday’s market close, AMC’s resilience and enduring popularity with moviegoers and investors alike continue to fuel optimism for the future.
“Barbie” and “Oppenheimer” were unique in their appeal, drawing significant attention due to their well-made and well-marketed films. These captivating movies managed to open on the same weekend, enjoying tremendous success with both critics and audiences.
Throughout the weekend, nearly 8 million moviegoers thronged to AMC theaters worldwide, marking the most attended weekend for the company since 2019.
The audience played a crucial role in the success of the ‘Barbenheimer’ phenomenon by embracing the concept of a movie meme-inspired double feature. 87,000 Stubbs reward program members opted to experience the pair of highly-anticipated films back-to-back, contributing significantly to the overall success.
AMC faced a legal challenge from Allegheny County Employees’ Retirement System, which alleged that the company’s board had breached its fiduciary duty. The stock conversion plan was part of an agreement to settle this lawsuit.
Delaware judge Morgan Zorn rejected the stock conversion plan, as it failed to consider the rights of shareholders not involved in the lawsuit. Approximately 2,850 purported shareholders communicated their concerns to the court, leading to the decision.
AMC’s CEO, Adam Aron, emphasized the need for financial flexibility to ensure the company’s ability to raise equity capital. This capital is essential for safeguarding AMC’s shareholder value in the long run.
AMC Entertainment Holdings experienced a thrilling stock surge following the blockbuster opening weekends of “Barbie” and “Oppenheimer.” The ‘Barbenheimer’ phenomenon, along with an influential court decision, contributed to the remarkable turnaround for the company. Despite its rollercoaster journey in the meme stock market, AMC’s resilience and commitment to financial flexibility continue to instill confidence in investors. The movie theater chain’s success rests not only on its well-made films but also on its dedication to offering an unforgettable experience to moviegoers worldwide.