Shares of movie theater company AMC Entertainment Holdings AMC surged on Monday with news of a blockbuster movie passing a milestone. Did the CEO's tweet help boost the share price?
What Happened: The blockbuster film “Top Gun: Maverick” from Paramount Global PARAPARAA passed $1 billion in global box office, a milestone that could show movie theaters and summer blockbusters are back.
Shares of AMC Entertainment Holdings closed Monday up 12.3% in a move that could be attributed to the strong box office showing and also a move to the Russell 1000 Index.
Over the weekend the phrase “#chokeonthat” was also trending related to a comment made by AMC CEO Adam Aron, which could have been a reason for Monday’s move.
“Other than a few idiots that readily come to my mind, and likely yours, who in the **** can still say movie theaters are dead and have no future? Thank you Tom Cruise. Top Gun: Maverick just crossed $1 billion in global box office, in less than one month! #CHOKEonTHAT,” Aron tweeted.
The “choke on that” comment could be in reference to short sellers, which have targeted AMC shares over the years. Benzinga Pro data shows 21.9% of AMC’s float is short currently.
Aron has praised “Top Gun: Maverick” as one of the reasons why he’s excited for the 2022 summer lineup of movies.
Related Link: 5 Things You Might Not Know About AMC CEO Adam Aron
What’s Next: Aron has gone on record highlighting several movies that could be blockbusters and help AMC and other movie theater companies.
“It’s going to be a big, big summer in our opinion and then it just continues all the way to Christmas,” Aron said recently.
The CEO named “Jurassic World: Dominion,” “Lightyear,” “Minions: The Rise of Gru” and the upcoming “Thor: Love and Thunder” as movies that could bolster box office revenue.
“When Hollywood makes movies and releases them in theaters that people want to see, they are coming out in huge numbers to enjoy our theaters, so we’re excited, we’re confident and we know that we’re on a path to recovery," he said.
AMC reported first quarter earnings in May, posting revenue of $785.7 million. The company’s revenue came in ahead of Street estimates of $736.2 million and was a large improvement on the $148.3 million reported in the first quarter of the previous year.
AMC reports second quarter results in August, a quarter that includes the results of “Top Gun: Maverick,” “Jurassic World: Dominion,” and “Lightyear.”
Investors could get a better picture of how the strong box office results for several summer blockbuster movies translates on the financial results from a leading movie theater company. The company could also provide a better outlook for the rest of the year with Aron being excited about the lineup.
Aron has been hosting and attending several movie screenings, connecting with fans and investors, a move that could show the CEO supporting the growth of the company during the busy summer blockbuster season.
Aron could continue to poke short sellers as the company reports strong results and movies hit strong numbers showing a recovery from the COVID-19 pandemic.
AMC Price Action: AMC shares are down 3% to $13.65 on Tuesday versus a 52-week range of $9.70 to $61.
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