Why AMC Entertainment Plummeted 50% in the First Half of 2022

Shares of movie theater chain AMC Entertainment (NYSE: AMC) stock fell 50% in the first half of 2022, according to data provided by S&P Global Market Intelligence. The stock is still declining from the meme-stock status which initially propelled its price upward, along with a slow recovery from pandemic closures.

At the beginning of the pandemic, with its doors shuttered and business at a complete halt, it wasn't clear whether or not AMC would make it through to the other side. It raised tons of cash and tried some interesting ideas, such as private screenings, and then got a boost from retail investors who banded together to create a short squeeze. AMC stock gained 400% in about a month last year as these investors pushed the stock higher, but as interest fell, and doors began to reopen, the price has been falling.

The return to theaters has been going very well, and AMC is trekking back up. In the 2022 first quarter, revenues were $786 million, a huge leap from $148 million last year. Net loss improved from $567 last year to $337 this year. While that's still below pre-pandemic numbers, it's a significant rebound.

Source Fool.com