Why AMC Entertainment Stock Plunged 11% at the Open Today
Shares of movie theater operator AMC Entertainment Holdings (NYSE: AMC) dropped as much as 11% out of the gate on Monday. There didn't appear to be any material news out of the company, but that didn't stop investors from taking in the bigger picture shaping up in the movie space, and deciding that the outlook is troubling.
The first big headwind for AMC today is that, despite reopening, there doesn't appear to be much desire among U.S. audiences to head to the movies. According to industry watchers, the domestic weekend box office was a meager $13.5 million, which was actually down over 13% from the prior week's tally.
The "blockbuster" Tenet appears to have pulled in just $36 million or so domestically at this point, with foreign ticket sales making up the vast bulk of its total $250 million in ticket revenue. It reportedly cost over $200 million to make, so this is hardly a successful move at this point when you factor in other costs, like advertising.
Source Fool.com
