AMC's CEO bemoans 'painful' stock slide amid 'ludicrously anemic' box office

By James Rogers

Shares of movie-theater chain and original meme stock AMC have hit a series of record lows recently

AMC Chief Executive Adam Aron described the recent slide in the company's shares as "painful" and pointed to the lingering impact of the COVID-19 pandemic on the movie-theater industry.

"So painful: 4 years after Covid the industrywide box office is still ludicrously anemic & AMC stock has slid to $4.48," he wrote on X, formerly known as Twitter. "Difficult to think about anything other than guiding AMC back in these challenging times. But greatness deserves praise: Sixers Joel Embiid... 70 points... 70!"

Philadelphia 76ers center Joel Embiid scored 70 points in a 133-123 victory over the San Antonio Spurs Monday. The reigning NBA MVP's feat broke Wilt Chamberlain's 76ers record of 68 points, which was set in 1967, nba.com reports.

Related: AMC hits another record low close, reflecting demise of its 'meme-stock' status

Shares of movie-theater chain and original meme-stock darling AMC (AMC) have hit a series of record lows recently. On Jan. 17. the stock registered a six-day losing streak and hit a record closing low of $4.11. AMC shares then booked two straight days of gains, before ending Monday's session down 0.7% at $4.48.

This is a far cry from the heady heights of the meme stock frenzy, when the company's shares hit an all-time closing high of $339.05 on June 2, 2021, according to Dow Jones Market Data.

AMC's recent market performance reflects the demise of the movie-theater chain's meme-stock status.

Related: 'Worn-out' investors are contributing to AMC's stock slide, Stocktwits says

Aron is a keen user of X, where he has more than 311,000 followers. Earlier this month he used the platform to express AMC's "eternal gratitude" to Taylor Swift as the singer-songwriter's concert film broke another record.

In addition to showing the successful "Taylor Swift: The Eras Tour" concert film in its theaters, AMC is also the theatrical distributor for the movie. AMC Theatres Distribution, along with sub-distribution partners Variance Films, Trafalgar Releasing, Cinepolis and Cineplex Inc. (CPXGF) (CA:CGX), clinched deals with movie-theater operators representing more than 8,500 venues globally to show the film, according to AMC.

On New Year's Eve, Aron slammed the "prophets of doom" who expected to see the company's demise in 2023. "To the prophets of doom certain that AMC would fail as a company and be forced into bankruptcy court in 2023: It is December 31, so we all know that YOU WERE WRONG," he wrote on X, formerly Twitter. "AMC is still here, still innovating, still blazing new trails. To the rest of you (think Apes) Happy New Year!"

Related: AMC CEO slams 'prophets of doom,' says company is 'blazing new trails' as it enters 2024

The investors who turned AMC into a meme stock often refer to themselves as "apes" or "ape nation."

AMC shares have fallen 90.8% in the last 52 weeks, compared with the S&P 500 index's SPX gain of 20.7%.

-James Rogers

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01-23-24 0907ET

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