Why Is AMC Stock Up 10% Today?

AMC Entertainment (NYSE:AMC) shares jumped in a rising market Nov. 11, then rose on a falling one over the weekend amid optimism for the movie theater business.

Barrington Research analyst James Goss put a “market perform” rating on AMC stock, which had been down more than 70% on the year. Shares opened Nov. 14 at $8 each, a market cap of nearly $4 billion.

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AMC CEO Adam Aron milked his “meme stock” status to raise capital since early 2021. The company’s cash balance at the end of September was still over $700 million. It started the year at $1.6 billion. The money went into running the business, which had an operating cash flow loss of $600 million for the first three quarters.

But Aron now says he can still buy other theaters as they go under. The bankruptcy of rival Cineworld could be one source of theaters, even as AMC itself closes poor performers.