What happened: AMC Entertainment (AMC) stock jumped more than 20% on Monday.
What’s behind the move: The movie theater chain reported quarterly record revenue of of $1.6 billion along with an all-time high Adjusted EBITDA, a measure of core operating earnings and cash-generating strength. “In AMC’s entire 106-year history, there has never been a quarter like this one,” said AMC CEO Adam Aron during the company’s earnings call on Monday morning
Aron also pushed against “the prognosticators of doom who have continued to vastly underestimate the will and the skill of AMC” as the company navigated six years of challenges. The quarter benefited from major releases that brought moviegoers back into theaters, including The Super Mario Galaxy Movie and The Odyssey. What else you need to know: The theater chain has aggressively fought back against the rise of streaming over the years by emphasizing the theatrical experience and using flexible pricing strategies to boost attendance.
The company has increased its market share, with domestic ticket revenues up by about 11.4%. European attendance in the second quarter increased by 18% year-over-year. The company has remained one of the most closely watched meme stocks in recent years, with a retail investor base helping fuel major moves in the share price.