Why AMC Entertainment Plunged 37.4% in August
Shares of movie theater operator AMC Entertainment (NYSE: AMC) plunged 37.4% in August, according to data from S&P Global Market Intelligence.
It was quite an interesting month for AMC, which reported earnings, saw a competitor say it was probably going to declare bankruptcy, and then issued a new class of preferred shares with identical properties to its own shares. But will this meme stock investor favorite be able to survive a slow summer movie slate?
In early August, AMC posted second-quarter earnings that showed a better-than-expected loss, although the company did miss on revenue. Yet even though bottom-line profitability was better than expected, AMC still burned $117 million in cash, because of high interest payments and capital expenditures.
Source Fool.com
