But I saw it in a comf-īRAD SMITH: That's how a kind of reverence in the theater.īRIAN SOZZI: Sat in a comfy, reclining seat. I went in there-īRAD SMITH: Yeah, but you're a big "Top Gun" fan.īRIAN SOZZI: Sure. I got to push back on the movie theater experience.īRIAN SOZZI: I saw "Top Gun" over the summer. So I mean, all of that considered, in a recession where people are gonna be looking at their discretionary spending, if there's one area that they're going to look across the experiences dollars that are going out the door or at the window in this case, then that movie theater experience might get pulled back tremendously.Īnd so what does that mean for AMC? Even in some of their own plans to prop up the movie theater experience and bring back some of the moviegoers through any type of Stubs membership or, you know, subscription service in the future.īRIAN SOZZI: Brad, you know, I agree with most everything you say. I'm gonna buy an overpriced concession that's probably hyped by about 400%.īRIAN SOZZI: Look at that popcorn, though, Brad.īRAD SMITH: Yeah, that popcorn could cost you $2.00-īRIAN SOZZI: AMC's coming out with that in the store now.īRAD SMITH: Probably $10 at the movie experience. So what is the draw for somebody to say, you know what? I'm gonna pay up. And look, for AMC, the years, perhaps not exactly what they had framed it up to be, especially on some of the blockbuster releases that had come out in the content schedule.Īnd now looking out to next year, I mean, what really is going to be able to kind of lift the tide for a lot of that moviegoing experience where we already know so much of the fanfare around some of the most viral titles, it continues to still be around titles that you can stream right now or titles that make it to streaming that much faster. But the fact that it did come out with it at a time where AMSheer- AMC shares have been under considerable pressure, I think is noteworthy.īRAD SMITH: Yeah, and this really in reaction to some of their debt reduction plans. "-because its capital structure is unsustainable and has limited options to reduce its debt burden and improve its cash flow." That type of aggressive commentary you do not usually hear from an S&P. Saying, "In our view, AMC is pursuing this transaction-" Of course, that debt for- debt for equity transaction we reported here last week. This is a company that's over the past two two, three years now looked at the memefication of its ticker, of its shares, and the price action that ensued in the run up during the Reddit-fueled trading frenzy.S&P showing it has a pulse in its research. But for AMC, here's what you also need to think about from an investment standpoint. Beyonce.īut anyway, for the number of people that are going to look for a much more economical decision that just going to the theaters to see this documentary, sure, that's going to be awesome. Heck, even I almost booked a ticket to travel to go see one of them. And it has been the summer of Taylor Swift, "Barbie" and Beyonce really driving so much of that experience economy. And sure, you might get some new fanfare, people who weren't able to make it to the concerts. JULIE HYMAN: Nevertheless, it's like a little gratuitous Taylor mentioned. I mean, and they probably are going to get a boost from that. I mean, maybe I'm being cynical, but you know. JULIE HYMAN: And as we know, any time you drop Taylor Swift's name, you're going to get more attention and a little more buzz. And I say that because the filing that talked about that said the company is doing this because it expects to get a boost from the showing of the Taylor Swift documentary concert movie in October.īRAD SMITH: Wow, he brought Taylor into this. But what I love about AMC is how savvy a meme sort of operator Adam Aron continues to be. Now, this comes on the heels of a contentious battle between AMC and the holders of its so-called APE shares that gave it the ability to sell more shares to the public, the conclusion of that court battle between the two. CEO Adam Aron said the move has, quote, "bolstered our ability to survive and then thrive." JULIE HYMAN: Shares of AMC are rising up almost 9% after announcing they've completed an at-the-market equity offering of 40 million shares at an average price of about $8.14 a share, raising about 325 and 1/2 million dollars. Yahoo Finance Live takes a closer look at AMC's methods to raise fresh capital and how certain cultural trends - such as Taylor Swift's Eras Tour movie concert - could drive even more movie-lovers back into theaters. AMC Entertainment ( AMC) stock is on the move higher after the theater chain reported raising $325 million by selling 40 million shares.
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