This sh*t is bananasAMC’s ready to attack, gonna lead that pack all the way to a special investor offering in the form of an “APE” dividend.
- AMC slipped and hit the ground with a 11% thud in Thursday’s extended trading after missing on the top line for Q2 even though the company saw revenue more than double for the quarter to hit $1.2bn, with its net loss of $121.6m slightly wider than expected.
- The core business seems to be booming on the back of a strong summer of blockbuster releases like Top Gun, leading ticket sales to more than double YoY to hit 43.5m, though that’s still down from 71.9m in Q2 of 2019. Movie-goers also helped bring in record-breaking revenues from its higher margin food and drink business.
- Silverback Aaron Aron wants to “reward” shareholders, declaring a special preferred stock dividend that will trade on the NYSE under the ticker “APE” as a nod to the retail traders that piled in last year. Investors however, see it as a workaround to raise more money after failing to get shareholder approval to issue more common shares last year, and afterhours prices indicate they ain’t happy.
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And the apes go wildThe Silverback pounds his chest as AMC comes out on top of Q1 and tries to to get the ape investors swinging again.
- AMC pumped as much as 5% in extended trading after sinking 9% in day trading to its lowest levels in nearly a year. The recovery came as AMC beat on both ends to report an LPS of $0.52 on revenues that grew 430% YoY to hit $785.7m.
- Apes can thank the other guy that swings around on stuff. AMC saw a 475% spike in attendance YoY to total 39.1m viewers in Q1 2021, marking its “strongest first quarter in two full years” – investors can credit Spider-Man: No Way Home and other blockbuster exclusives that have helped AMC lure in cinema fans and make a pandemic-comeback.
- Wen squeeze tho? We’d recommend keeping a lid on any cinematic expectations for now given expenses are rising and losses are rolling in – however, these earnings are good news for AMC’s ability to survive the end of the pandemic-related retail frenzy and inflation, which may make splashing $$ on the cinema less appealing.
Donreál Lunkin / Unsplash
Adam Aron is a man with a grand planAMC’s chief executive has got a spending spree planned as he works to make the most of retail trading interest in the market.
🔍 Key points:
- AMC rocketed up 44% on Monday to its highest close of 2022, having seen ten straight sessions of green that have more than doubled its valuation to $15bn in the last two weeks.
- CEO Adam Aron wants to look for more “transformational deals” to spend AMC’s $1.8bn war chest on after the successful reception of its unusual acquisition of struggling gold and silver mining firm, Hycroft Mining – which is what sent the stock rallying in the first place.
- Aron wants to use the power of the meme stock to turn around these companies, using his experience of engaging retail traders to solve their liquidity problems. Said retail traders seem happy enough with the plan given share prices, but short sellers may have a problem covering their positions if the rally continues.
Milken Institute / Flickr
AMC strikes gold, literallyAs part of AMC’s new diversification strategy, it has bought a stake in a mining company. You’d be forgiven for thinking we’re talking about a crypto mining company, but you’d also be wrong.
🔍 Key points:
- AMC has agreed to buy a 22% stake in Hycroft Mining, spending $28m on the small and struggling gold and silver mining firm. Given AMC has debt worth $5.4bn, it’s "a little baffling" that it’s splashing the cash like this, according to Wedbush analyst Alicia Reese (among others).
- But CEO Adam Aron says they’re on “a glide path to recovery”. Apparently successes in hits like the new Batman and Bond flicks have helped amass a war chest that makes the purchase possible, and he claims that the embattled Hycroft is v similar to AMC a year ago and that he can help it “surmount its challenges”. Confidence is key, we guess…
- Shareholders must agree, because prices popped over 4% on Tuesday after four consecutive days in the red. Then again, AMC investors are hardly your typical group, so there’s no telling what thrills them.
Peter Olexa / Unsplash
AMC earns some applauseAMC shows a fourth quarter screening that leaves investors feeling starstruck despite getting a peek at the trailer earlier this month.
- AMC rallied 5% in extended trading on Tuesday after releasing its “best quarterly results in two years”. It reported LPS of $0.26 (down from $6.21 per share the year before) on revenues of $1.17bn (up from $162m the year before, but tbf that was mid-pandemic).
- Box office hits like Spider-Man: No Way Home reeled in a lot of cash. The quarter boasted a bunch of long-anticipated films like Venom 2 and the latest James Bond, bringing the masses for a cinema date. Omicron forced the pushback of current quarter releases though, which is expected to weigh on Q1, but it apparently it’ll all even out towards the end of the year.
- AMC is raising its ticket prices as it tests out a refreshed pricing model, which will see new releases cost more than other films (those are the ones most people come to see). CEO Adam Aron says this, together with its focus on NFTs and crypto, will help AMC become “something much greater than solely a movie theater operator”.
Road Trip with Raj / Unsplash
A promising Q4 trailerInvestors get to see some BTS footage of what Q4 has in store, and they like what they see.
- AMC released preliminary Q4 results that topped analyst expectations on Tuesday, and it’s set to be the strongest quarter in over two years.
- Revenue is expected to soar to $1.7bn from just $163m in Q4 2020, which tbf was mid-pandemic and before the retail trading crowd found its feet. It did, however, warn that its losses would be wider than expected.
- Prices boasted gains of as much as 16% in intraday trading before closing Tuesday up 5% – after six straight weeks of losses, could this be a turning point, or is that too much to hope for in meme stock world?
Jeffrey Gruszka / Unsplash
The apes follow their alphaAMC insiders get investors wondering if there’s something they should know. If everyone else dumped their shares, would you?
- The famously volatile meme stock fell 9% on Thursday to hit a 2022 low after some fell prey to the peer pressure.
- CEO Adam Aron sold another $7.1m in shares on Tuesday at a slightly discounted price, and Chief Content Officer Elizabeth Frank chucked a chunk of her stock too. Insiders sold well over $70m of their stock in 2021.
- To be fair, Aron warned that he would be selling some of his stake last year, so the dramatic drop could be an overreaction. Will you keep HODLing?
One CEO's New Year's ResolutionTurns out even CEOs are susceptible to the temptation of pledging a whole bunch of New Year's resolutions. Let’s see if Adam Aron can keep his.
- AMC is down over 7% for 2022 as of Tuesday morning trading, after leaving a rollercoaster 2021 as one of the market’s best performing large-cap stocks with gains of over 1,136%.
- Adam Aron vowed on Twitter to tidy up AMC’s balance sheet this year and refinance its pandemic debt.
- AMC spent over $320m in interest on its borrowings in the first nine months of 2021, and it could use the extra cash to try to keep its memestock momentum.
Chase Yi / Unsplash
The inside storyAMC sees a two-day sell-off after news hits that insiders have been dumping their shares.
- AMC ended Friday down 6.86%, now down over 15% in two days and 19% for the month as Omicron hit the U.S.
- Top execs have been selling their stock. CEO Adam Aron sold $6.9m worth in shares, and the movie operator's CFO sold all of his remaining $600k in shares – insiders have sold stock 24 times in the last three months and only bought once.
- It’s not you, it’s me. CEOs and corporate insiders have dumped a record $69 billion in stock this year as tax hikes loom.
Illustration by TradingView
Another NFT success storyAMC has had some newfound NFT success, and it’s making the most of it.
- AMC is offering free NFTs to all of its shareholders in partnership with the Worldwide Asset eXchange (WAX).
- It started giving away “I own AMC” NFTs last week to people who bought tickets for the latest Spiderman movie, a wildly popular offering that sent online ticket sales to their highest ever levels.
- 2021 has been a breakthrough year for NFTs, with the market expected to top $17.7bn this year.
Erik Mclean / Unsplash
The Silverback leads a pack of share salesAdam Aron kicked off a trend two weeks ago that has seen a bunch of top execs throw out their shares.
- AMC insiders have sold $70m in shares this year, led by CEO Adam Aron, with no purchases in sight.
- Adam dumped $25m in AMC shares two weeks ago to do some “prudent estate planning” – all while maintaining his “confidence” in the company – and 14 other execs seemed to think that was a great idea.
- The stock is still up nearly 1,800% this year as online retail traders continue to stand behind the “You buy. You hold” mindset.
AMC takes crypto mainstreamAfter months of teasing the Twitterverse, Adam Aron makes good on his crypto payments promises.
- AMC is officially taking crypto as payment for its movie tickets, its CEO tweeted on Thursday after months of promising the online apes.
- It’s starting with Bitcoin (BTCUSD), Ethereum (ETHUSD), Bitcoin Cash (BCHUSD), and Litecoin (LTCUSD) – Doge (DOGEUSD) is on the way soon.
- Aron is “hyperactive” about crypto. AMC wants to launch its own cryptocurrency and NFTs.
The Silverback goes for goldHead Ape Adam Aron is dumping shares, as America’s ultra-rich scramble to get their affairs in order before Biden’s tax bill whips their cash.
- Adam Aron sold $25m in AMC shares, sending prices down over 3% in Wednesday after-hours trading despite having warned investors in advance.
- Biden is going billionaire hunting, tracking down unpaid taxes by going after their tradable assets
- Aron is doing some “prudent estate planning” and banking on AMC’s 1,660% yearly gain to keep the ship steady, but there’s no telling how such a volatile stock might respond.
Q3 earnings have AMC investors calling “cut!”AMC gives investors a good Q3 earnings show, but the post credit scene has people wishing they’d left early.
💸 AMC had its best quarter since pre-Covid with a sixfold increase in revenue – but prices dropped after hours.
🍿 Movie-goers doubled this quarter as the economy enjoyed a re-opening.
💱 Crypto is the key for CEO Adam Aron. AMC already accepts a bunch of coins and now wants to launch its own NFT.
🚨 Plot twist – AMC warned that the pandemic isn’t gone yet, and Winter is Coming...
🎬 AMC lost domestic market share in Q3 despite gains at the start of the year, so it might take more than a couple of rom coms to get back on track.
AMC sees a scarily good OctoberAMC gets a pat on the back of 4.81% from excited investors after the meme stock showed some industry strength and reported that October brought in the highest ticket sales revenue since before the pandemic in February 2020. The month was boosted by a bunch of box office releases, including No Time to Die, Venom, and Dune; and other cinema chains also reported a strong comeback. AMC didn’t provide exact box office numbers, but said:
When the final tickets are counted for showtimes tonight, the domestic industry box office for October 2021 is estimated to come in considerably higher than that of any previous month since February of 2020
Whilst its box office numbers may have seen some strength this October, AMC’s share price wasn’t so lucky, and the stock ended the month down over 7%.
Adam Aron gets the opinion of the apesAMC is nothing if not a democracy, or so it seems as CEO Adam Aron once again sets a Twitter poll to see what the Apes have to say about its crypto activities – this time though, it's Shiba Inu that’s in the hot seat.
AMC takes its crypto commitment seriously – you can already buy digital gift cards to watch movies with Bitcoin (BTCUSD), Ethereum (ETHUSD), Litecoin (LTCUSD), and Dogecoin (DOGEUSD). The meme stock is also currently in the process of making it so that people can pay online for tickets and snacks in cryptocurrencies, and last week even hinted at the idea of creating a company-specific cryptocurrency. AMC likes to give the people what they want, having added Dogecoin (DOGEUSD) to the list of accepted currencies after the CEO asked Twitter if they wanted the dog themed currency to feature. Now, given the unprecedented boom that rival dog coin Shiba Inu (SHIBUSD) has seen this month, CEO Adam Aron is once again taking it to the Apes (as AMC investors like to call themselves, in homage to the Planet of the Apes movies.) The chief executive posted another poll on Friday asking if Shiba (SHIBUSD) should be added to the list, and so far over 85% of the 144,636 votes have been a “Yes”. With two days left on the poll, the voter numbers have already beat the 140,388 users that voted in the Doge poll in September, so clearly Twitter is excited.
AMC deals with Disney delaysDisney’s schedule shake-up earlier last week combined with a pull-back from an attempted short squeeze leaves AMC down nearly 10% for the week.
AMC started the week with a bang after #AMCSqueeze trended on social media platforms on Monday as the Apes “celebrated” the birthday of Citadel founder Ken Griffin – who is pretty unpopular among retail traders after he called the cohort “conspiracy theorists”. Retail traders might be losing their edge though because the rally was brought to an end by Disney, which delayed the release of a number of Marvel films that AMC was relying on to bring in the big bucks.
The losses extended through the week, and the stock closed down over 10% for the week.
Josh Chiodo / Unsplash
Adam Aron eyes cryptoAMC is still riding on the successes of meme stock mania, but CEO Adam Aron is hinting at a new direction for the company, potentially diving deeper into its crypto journey.
AMC has been dipping its toes into the cryptocurrency world recently, introducing a crypto payment system a few weeks ago, and it looks like the company might be ready to dive in as CEO Adam Aron gets ready to take the company in another direction. The executive alluded to a few surprises on the way for investors as the company makes changes to its business model. Not long after, Aron went on to say that the company is looking closely at lucrative world of crypt and has a number of crypto projects in the pipelines, adding:
We’ve made a lot of noise about getting hyperactive in cryptocurrency. There are many reasons why AMC could be a successful issuer and redeemer of cryptocurrency. And that’s just one out of half a dozen ideas that we’re working on right now.
AMC lost all of its Tuesday short-squeeze gains on Wednesday, ending the day down 5.18%.
Spooky season gives AMC a boostTheatre goers are getting excited for spooky season, and AMC lifts nearly 6% on Monday as “Halloween Kills” gets ready to hit theaters and kill the box office numbers.
AMC is trading at its best levels of the month so far after taking investors on a roller coaster ride this summer, and is hoping that the strong momentum will continue on the back of movie mania. The meme stock has been reaping the rewards of strong box office numbers recently – new movies like Venom and No Time to Die have gotten record attendance and boasted the highest grossing weekend since before the pandemic. A new thriller, Halloween Kills, will debut on Friday, and the company has its fingers crossed for another milestone-hitting weekend.
The hashtag #AMCSqueeze has also been trending on social media platforms the last few days as the Apes “celebrated” the birthday of Citadel founder Ken Griffin, who is pretty unpopular among retail traders after he called the cohort “conspiracy theorists”. Nothing like a short squeeze to show the traditionalists who’s top dog.
AMC ended Monday up 5.62 at $43.03, its highest closing price since September 17.
Universal Pictures / Wikimedia Commons
Is AMC struggling to outrun the short sellers?Despite an effort from the online army to send AMC prices rallying on Tuesday, the stock closed the day down as short sellers catch up.
The online army tried to send AMC soaring on Tuesday, with #AMCSqueeze trending through the day and Reddit’s WallStreetBets scattered with the stocks name. However, the meme stock might be losing its edge and closed Tuesday down 1.15% after a well known short seller said it had covered its AMC short bet at a 30% profit. Iceberg Research first tweeted about its short in the stock in July, saying:
We are short $AMC. Fundamentals are obvious. After one month of trading sideways and lots of money lost in call options, the pump seems increasingly shaky.
Just over three months later, the firm gave an update, saying it had covered its short bet with a profit of 30% and adding:
We agree with the “Apes” when they demand more transparency on the role of market makers in the meme sagas: payment for order flow structurally generates conflicts of interest. But there is frequent confusion between market makers and activist short sellers. Different crowd.
Prices made an attempt at a rebound on Wednesday and closed the day up just under 3%.