AMC Stock Soars Amid Resurgence of Meme Stock Interest

NEW YORK, NY — AMC Entertainment experienced a notable surge in its stock price this week, likely influenced by renewed interest in meme stocks, particularly after events surrounding GameStop.

Shares of GameStop Corp. (GME) increased by over 7% on Monday following a social media post by CEO Ryan Cohen, which featured a meeting with Michael Saylor, co-founder of MicroStrategy (MSTR). Investors speculated that this meeting indicated potential new strategies for GameStop surrounding cryptocurrency investments. The attention surrounding GameStop has been a catalyst for similar trading trends among meme stocks.

AMC’s stock jumped more than 4% on Tuesday, with an additional nearly 2% increase observed in premarket trading on Wednesday. This rally has brought AMC stock prices to new heights, resonating with the overall excitement in the meme stock sector.

Despite a slight dip of 2% in GME shares on Tuesday, the momentum for AMC appeared to be supported by more than just the shifting dynamics of GameStop. The broader recovery of the entertainment industry has also played a pivotal role. Cineplex, a major Canadian cinema chain, reported a significant 15% revenue increase as audiences returned to theaters.

Blockbuster releases such as ‘Gladiator II’ and ‘Wicked’ are believed to have played an important role in drawing moviegoers back into theaters. Additionally, Disney’s recent success with releases like ‘Moana 2‘ has further demonstrated the potential for resurgence in box office revenue, with the film becoming Disney’s third 2024 release to surpass $1 billion globally.

While total U.S. theater sales saw a drop of over 3% to around $8.7 billion in 2024, this figure reflects a strong recovery compared to prior estimates. Earlier this year, reports indicated that theater sales were down as much as 20% from 2023 levels.

AMC recently released its fiscal third-quarter results for 2024, which didn’t match the high performance seen in the previous year, primarily due to competition from record-breaking films like ‘Barbie‘ and ‘Oppenheimer.’ CEO Adam Aron expressed optimism, highlighting a robust lineup of films slated for release in the coming months and years. Aron stated, “Based on what we know now, we expect that the industry-wide box office should markedly rise at year-end and rise yet again for the next two years.”

The next earnings report for AMC Entertainment is set for February 27, where investors will closely monitor how the anticipated film releases have impacted box office performance.

According to a recent consensus among four Wall Street analysts, AMC currently holds a ‘Hold’ rating, with a 12-month price target set at $3.63, suggesting an approximate 10% potential upside.