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The stock of AMC is down, as are the stocks of other movie theaters.
Getty Images/Ethan Miller
AMC Entertainment Holdings is a company that produces movies.
On a horrible day for the overall market on Monday morning, I joined a movie theater stock rout. Concerns over the rising number of Covid-19 cases overshadowed another successful film office debut. In Monday trading, AMC stock (ticker: AMC) was down 6.2 percent to $32.80, trimming losses from an intraday low of $31.15. The original meme stock’s shares
GameStop
Around 12:00 EDT, the (GME) was swaying up and down. AMC is also a meme stock, which means its day-to-day trading activity is often influenced by social media chatter, options and momentum trading quirks, and short seller activity. However, its movie theater peers were also down on Monday, possibly reflecting concerns about what a return of Covid-19 restrictions might mean for them.
IMAX
The stock (IMAX) fell 2.8 percent to $16.30.
Cinemark Holdings is a company that produces movies.
The stock (CNK) was trading at $15.03, down 5.2 percent. Stocks of
Cineworld Group is a company that produces movies.
In London trading, (CINE.L), which owns Regal Cinemas and other movie theater chains throughout the world, fell 10%. Fears of a Covid-19 revival finally seemed to frighten the larger market. The S&P 500 index fell 1.7 percent, while the Dow Jones Industrial Average fell 821 points, or 2.4 percent. According to The New York Times, Covid-19 cases have increased by 34% internationally in the last two weeks. According to media reports, the move for theaters overshadowed Space Jam: A New Legacy, which opened to $31.7 million in the United States, beating out Black Widow’s second weekend of $26.3 million. The film had the best Warner Bros. opening so far this year, beating out Godzilla vs. Kong’s $31.6 million debut in early April. The new Space Jam starring basketball phenom LeBron James, like its Michael Jordan-led predecessor, has garnered largely unfavorable reviews from reviewers, but has gained more supporters in the user score section on review aggregate site Rotten Tomatoes. It also did so despite, like other 2021 Warner Bros. films, temporarily streaming at no additional cost to HBO Max customers; Disney+ is charging users a $30 premium price for access to Black Widow before October. If Monday’s slump maintains, AMC’s current decline will have totaled 44 percent since June 18, when shares ended at $59.26. Connor Smith can be reached at connor.smith@barrons.com./n
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