Why AMC Entertainment Stock Fell Over 10% at the Open Today
Shares of AMC Entertainment Holdings (NYSE: AMC), one of the largest movie theater operators in North America, fell nearly 11% in early trading on Nov. 9. An hour or so into the trading day the stock was still down by roughly 9%. The big news out of the company was third-quarter 2021 earnings, which it reported after the market closed on Nov. 8.
Trading in AMC Entertainment's stock has been caught up in the meme stock craze, so it often moves, sometimes dramatically, for no discernible reason. However, today's move had a reason. The movie theater operator reported third-quarter 2021 revenue of $763 million, up from a scant $120 million in the same quarter of 2020. Roughly 40 million moviegoers visited the company's theaters globally in the quarter, up from just 6.5 million last year. The adjusted quarterly loss declined from $5.70 per share in the third quarter of 2020 to a loss of just $0.44 this year. These are massive improvements, largely thanks to economic reopenings following the coronavirus-related economic shutdowns in 2020. Which brings up the problem with the numbers.
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Source Fool.com
