Why AMC Entertainment (AMC) Shares Are Sliding Today

What Happened?

Shares of theater company AMC Entertainment (NYSE:AMC) fell 7.5% in the afternoon session after the company reported mixed third-quarter results that featured a wider-than-expected loss despite revenue beating analyst forecasts. 

The movie theater chain posted revenue of $1.3 billion, which surpassed expectations. However, investors focused on the bottom line, where the company's net loss widened significantly to $298.2 million from $20.7 million in the same period of the previous year. The adjusted loss per share came in at $0.21, missing Wall Street's estimates. While the expanded loss was attributed mainly to non-cash charges from a debt refinancing, another measure of performance, adjusted EBITDA, also fell 24% year over year, signaling softer underlying cash generation.

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What Is The Market Telling Us

AMC Entertainment’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock gained 10.5% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.

AMC Entertainment is down 39.5% since the beginning of the year, and at $2.43 per share, it is trading 53.2% below its 52-week high of $5.20 from December 2024. Investors who bought $1,000 worth of AMC Entertainment’s shares 5 years ago would now be looking at an investment worth $73.17.

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