Shares in AMC Entertainment went for a memorable roller coaster ride this week, with shares in the exhibitor ending the week at $13.26, up almost 300% for the week and over 600% from the doldrums of early January when its shares had traded at under $2. One reason for this volatility was the cauldron of stock speculation coming from amateur investors, banding together through the on-line trading platform Robinhood. Check out #SaveAMC trending on Twitter and the very active r/WallStreetBets subreddit (discussion forum) on Reddit.
However, the foundation for AMC’s improved outlook was the company’s announcement on Monday that it had secured commitments from institutional investors to provide $917M in additional funding to cover operational expenses during the time it takes for the pandemic to be tamed and normal levels of movie-going to resume. CEO Adam Aron expressed optimism, saying that bankruptcy was now “off the table” and the “sun is shining on AMC.” From the Financial Times article: “The company said it would need attendance to rise to 10 per cent of pre-coronavirus levels in the first quarter, 15 per cent in the second quarter, 65 per cent in the third quarter and 90 per cent in the fourth quarter to see out the year with its current funds.”
See Also: “Meme stock” rally rescues AMC theaters from $600 debt (Polygon)