Oppenheimer Release Court Ruling Elevate AMC: Shares of AMC Entertainment Holdings (AMC) experienced a considerable surge, closing up 33% at $5.85 on Monday. This marked the first trading day after the impressive opening weekends of the much-anticipated films “Barbie” and “Oppenheimer”. Additionally, a favorable court ruling against the movie theater chain’s board on stock conversion further bolstered AMC’s stock.
Box Office Hit: ‘Barbie’, ‘Oppenheimer’ Openings Boost AMC Stock
The ‘Barbie’, ‘Oppenheimer’ openings proved to be a significant boost to AMC’s fortunes. Both films enjoyed blockbuster opening weekends, with “Barbie” bringing in $162 million domestically and “Oppenheimer” drawing in $82 million. These impressive figures made “Barbie” the highest-earning opening weekend domestic box office for a female-directed film ever, according to The Hollywood Reporter.
‘Barbenhimer’ Phenomenon: Double Feature Drives Attendances
The ‘Barbie’, ‘Oppenheimer’ openings have not only led to a surge in AMC’s stock but have also drawn moviegoers back to the theaters in record numbers. AMC announced that the past weekend saw the highest attendance in over three years, with nearly 8 million people globally visiting an AMC theater.
The double feature of ‘Barbie’ and ‘Oppenheimer‘ attracted a significant portion of these attendees, with 87,000 of the chain’s Stubbs reward program members booking the double bill. AMC also recorded the second-highest concession sales in the company’s history, second only to the opening Saturday for “Avengers: Endgame”.
Delaware Court Decision Affects AMC’s Stock Conversion
Another factor contributing to AMC’s stock surge was a Delaware State Court decision that prevented the company from converting equity stock into common stock. This conversion was part of a proposed settlement to a lawsuit against the company by Allegheny County Employees’ Retirement System claiming that the board breached its fiduciary duty. However, the plan was rejected by Delaware Judge Morgan Zorn, who stated that the plan did not account for the rights of shareholders not included in the lawsuit.
In 2021, AMC was one of several companies swept up in the meme stock market phenomenon, where retail investors targeted stocks shorted by institutional investors. Since reaching an all-time high of $72.62 in June 2021, AMC’s stock has primarily slid, but the recent success of the ‘Barbie’, ‘Oppenheimer’ openings has introduced a new variable in the stock’s performance. Despite the fluctuating stock price, the recent boost from the ‘Barbie’, ‘Oppenheimer’ openings demonstrates the potential impact of blockbuster releases on AMC’s financial health.
Conclusion of Oppenheimer Release Court Ruling Elevate AMC
AMC’s stock rise marks the latest peak in the company’s rollercoaster financial journey, from a low of nearly $2 per share to a ‘meme king’ and back to single digits. Much of this recent success can be attributed to the ‘Barbie’, ‘Oppenheimer’ openings, which have reinvigorated AMC’s market position.
Q.1: What led to the surge in AMC’s stock?
A: The surge in AMC’s stock is primarily due to the success of the ‘Barbie’, ‘Oppenheimer’ openings, as well as a favorable court decision preventing the company from converting equity stock into common stock.
Q.2: How much did ‘Barbie’ and ‘Oppenheimer’ earn during their opening weekends?
A: Barbie’ earned $162 million domestically during its opening weekend, while ‘Oppenheimer’ brought in $82 million.
Q.3: How did the ‘Barbie’, ‘Oppenheimer’ openings affect AMC’s attendance?
A: The ‘Barbie’, ‘Oppenheimer’ openings attracted nearly 8 million moviegoers to AMC theaters worldwide, marking the highest attendance since 2019.