This was supposed to be the return of the short squeeze week. AMC has already led the way in raising ticket prices for these blockbusters, with some tickets going for $15 to $20 rather than the more normal $10 to $12. Making it toward the top of that range would be a bullish sign for AMC. Analysts expect the film to gross between $137 million and $167 million.
Stock squeeze movie#
Jurassic Park: Dominion is actually the sixth movie in the Jurassic Park franchise based off the original book by Michael Crichton. The second flick that AMC needs to do well is also part of a franchise. The US fighter pilot movie starring Tom Cruise even beat a 15-year record on Memorial Day Weekend. First, Top Gun: Maverick has already done more that $160 million in US ticket sales and more than $300 million worldwide. The summer in the northern hemisphere has begun with two flicks that AMC CEO Adam Aron is counting on. These are Hollywood's biggest movies that draw large groups of friends and family to the big screen for often the only time all year. AMC stock bull case rests on summer blockbustersĪMC's business and full-year outlook is very dependent on the summer blockbuster season. AMC shares are down 51.8% year to date in line with other risky stocks that are selling off now that the Federal Reserve is raising interest rates to fight inflation. Bulls are hoping that the blockbuster season ahead this summer turns the share price around. AMC now seems to have developed a bit of overhead resistance just above $14. Once the short squeeze did not materialize though, traders took profits on Thursday. The retail crowd momentarily bought up shares in the first half of the week on news from Reuters that big institutional short-sellers were once again betting against AMC. News of a return of short-sellers to meme stocks like GameStop (GME) and AMC perked the attention of the retail crowd mid-week, but so far the shorts seem to have the upper hand.Īlso read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries AMC stock performanceĭespite losing 5.5% on Thursday to close at $12.78, AMC stock is still up 6.6%. Before the covid pandemic, AMC routinely brought in $5.5 billion in annual revenues, but reaching even $1 billion per quarter now seems quite difficult. At the moment the global cinema chain is touting its summer blockbusters and hoping several of these major titles will bring families back to the silver screen. The excitement surrounding a possible short squeeze brought many long-time traders back into the name, but the enthusiasm did not hold. AMC share did not benefit as much from May's bear market rally and thus have less gains to give back.ĪMC stock has lost some of its luster since Wednesday's high. The market is reading this continued high inflation as a sign that the Federal Reserve may have to raise interest rates higher than expected, which would make stocks (especially growth stocks) less valuable compared with bonds.
The inflation rate is the highest in 40 years. The CPI printed at 8.6% YoY, much higher than the 8.3% predicted by economists. The good news is that AMC is actually besting the Nasdaq, which has tumbled a whopping 3% as May's Consumer Price Index, a measure of inflation, came in higher than expected due to heightened gasoline prices. UPDATE: AMC stock is following Thursday's lead on Friday and trading down 2.8% at $12.42 nearly an hour into the session.
Short-sellers have returned for meme stocks.GameStop stock also retracts 7% to $128.98.AMC stock drops 5.5% to $12.78 on Thursday.
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