AMC Entertainment Holdings Inc. shares soared 4.38% in after-hours on Wednesday, December 01, 2021, and closed the daily trading at $29.82. However, in the regular trading on Wednesday, AMC’s stock lost 15.82%. AMC shares have risen 588.43% over the last 12 months, and they have moved down 27.04% in the past week. Over the past three months, the stock has lost 34.61%, while over the past six months, it has declined 44.35%.
Let’s briefly discuss its latest developments.
Reasons behind AMC recent stock fluctuation
AMC shares declined as much as 17% during the regular trading session on Wednesday after the Centers for Disease Control and Prevention (CDC) confirmed the first case of the Omicron variant detected in California. The stock closed 15% lower, at $28.57.
The other stocks plummeted as well over concerns that variant would disrupt daily life as it happened before where AMC had to close its business. AMC’s stock is down 26% since the variant was first announced last Friday, causing a market sell-off.
However, in the pre-market session on Wednesday, the stock went up 4.24% after the company announced on Tuesday that it had the biggest day of ticket sales on Monday for a single title since re-opening with “Spider-Man: No Way Home.”
AMC and Sony Pictures’ collaboration to offer the first-ever NFT promotion act as a catalyst for the ticket sales. To qualify, members had to be among the first 86,000 to purchase their opening day tickets. All 86,000 Spider-Man NFTs were fully allotted, as a result of qualified ticket purchases on Monday.
Proposed Class Action Settlement
On November 15, 2021, Miller Shah LLP announced that the United States District Court for the Southern District of New York has approved the proposed class action settlement that would benefit purchasers of AMC Entertainment Holdings, Inc. Common Stock.
AMC will deposit $18 million in the settlement fund) in exchange for the dismissal of the Action against the company. The court also st 28 February 2022 last date for claims to be submitted.
AMC recent financial results
On November 08, 2021, AMC Entertainment Holdings, Inc reported results for the third quarter ended September 30, 2021.
AMC Q3 2021 financial highlights
- Revenue was $763.2 million in Q3 2021 compared to $119.5 million in Q3 2020.
- Total operating costs and expenses for Q3 2021 were $908.4 million compared to $794.9 million in Q3 2020.
- It suffered a net loss of $224.2 million in Q3 2021 compared to a net loss of $905.8 million in Q3 2020.
- The company ended the quarter with total cash of $1,612.5 million excluding restricted cash of $27.7 million.
The new covid variant omicron is again creating uncertainty for the business, like AMC and that’s the reason its stock price is fluctuating since the announcement of the new variant. We can see a more mixed performance on Thursday.