AMC said it will add more showtimes to meet higher-than-expected capacity. The concert film will play at least four showtimes per day on Thursdays, Fridays, Saturdays and Sundays at every AMC location in the U.S. starting October 13th.
Wedbush analyst Michael Pachter previously estimated opening day sales at just under $10 million, or two to three times that if properly expanded.
“I was obviously wrong,” he said. Baron After AMC announced the sale.
Pachter said the concert film could hit $250 million in ticket sales or more. He doesn’t think the numbers will be a game-changer for AMC, but he believes the concept of taping concerts or even streaming them live in theaters has legs.
“There’s no reason why sold-out concert series tickets can’t add up to sold-out theaters in a city,” Pachter says.
AMC stock was down 1.8% in Friday morning trading. The company recently issued a reverse dividend and converted preferred equity units into common shares. The moves allow the firm to sell more shares to pay off debt, although each sale reduces existing shareholders’ holdings.
AMC has built a warm base of retail shareholders who gather through online platforms. The company first drew attention during the outbreak, which could pose a major problem for AMC as short-sellers close out bets.
Instead, buyers piled into the stock and squeezed short sellers. Adjusting for dividends, the stock has traded as low as $107.50 and as low as $10.72 over the past 12 months. It rose north of $500 in June 2021. Although the coming wave of stock sales may alarm traditional Wall Street investors, the retail crowd is currently celebrating the runway the stock sales are providing the company.
Analyst Alicia Reese, along with colleague Pachter at Wedbush, upgraded AMC stock to neutral with a $19 price target on the stock on August 24.
“AMC is well positioned against the evolving industry backdrop,” they wrote. “Currently, moviegoers are content-poor, but we’re seeing that they’re increasingly opting for premium screens and higher-margin offers.”
The visit to Iras itself is a great success. It is expected to be It was the biggest grossing concert in history. Federal Reserve Bank of Philadelphia He said earlier this year Despite the decline in tourism, May was the strongest month for hotel revenue in the city since the pandemic began, “primarily due to the number of guests in town for the Taylor Swift affair.”
The lesson here is to never play against Taylor Swift and her fans.
Write to Connor Smith at [email protected]
