Why AMC Entertainment Surged 45.5% in August
Shares of AMC Entertainment Holdings (NYSE: AMC) rose 45.5% in August, according to data from S&P Global Market Intelligence. Shares rose off of extremely low levels as theaters began to reopen across the U.S. after several months of lockdowns. Of course, AMC had fallen to very low levels prior to August as the COVID-19 pandemic forced theaters to close, so longtime shareholders are still looking at a very depressed stock -- in a company for which bankruptcy is still on the table.
Although AMC reported second-quarter earnings to begin the month, the numbers weren't the reason for the stock price increase. Basically all of AMC's theaters were closed, and the company reported only $18.9 million in revenue, a massive $561 million net loss, and $267 million in negative free cash flow.
AMC Entertainment isn't out of the woods yet. Image source: Getty Images.
Source Fool.com
