|Bid||5.20 x 1800|
|Ask||5.17 x 3200|
|Day's Range||4.83 - 5.38|
|52 Week Range||1.95 - 12.49|
|Beta (5Y Monthly)||1.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jun. 22, 2020 - Jun. 26, 2020|
|Forward Dividend & Yield||0.12 (2.14%)|
|Ex-Dividend Date||Mar. 06, 2020|
|1y Target Est||3.20|
What happened Cinemark (NYSE: CNK) tumbled almost 11% today on no company-specific news, but fellow theater operator AMC Entertainment (NYSE: AMC) was down 10% as well. So what Movie theater chains had gotten a boost the other day thanks to prospects improving for reopening the economy, though at least one analyst worried that Cinemark would be hurt by its exposure to the Brazilian market.
The future for AMC Entertainment (NYSE: AMC) was looking as dark as the theaters it was forced to close due to the COVID-19 pandemic, but an analyst says the lights may go up again after all. Almost two months after MKM Partners analyst Eric Handler said bankruptcy "appeared likely" for AMC, the Wall Street pro now says the threat has "lessened considerably," and he hiked his fair value estimate of the theater operator's stock from $1 per share to $5 per share. AMC had slashed its dividend, its executives agreed to take deep pay cuts, and it closed all its theaters in a bid to conserve cash.
With the original fan favorite TV series The Walking Dead wrapping up its final season, AMC Entertainment (NYSE: AMC) now has a fairly likely timetable for the franchise to rise from the grave in the spinoff series The Walking Dead: World Beyond. Talking with Hollywood Reporter, AMC's Chief Operating Officer Ed Carroll revealed a probable air date in the fourth quarter of 2020. Both the last episode of The Walking Dead and the start of World Beyond were filmed prior to the coronavirus-related shutdown.
As coronavirus restrictions lift, one expert says 'simply opening the doors will not be enough.'
AMC Entertainment (AMC) closed at $4.58 in the latest trading session, marking a -1.08% move from the prior day.
A survey shows 70% of people prefer new movie releases as digital in-home rentals, and it's not the only problem for theater operators like AMC.
The rumor makes sense: E-commerce giant Amazon (NASDAQ: AMZN) has shown interest in the movie industry in the past, and as long as the audience for Amazon Studios' productions is limited to Prime members, the company is leaving money on the table. If it acquired movie-theater giant AMC Entertainment (NYSE: AMC), Amazon would shift into the mainstream of the film industry, and its ability to screen its releases would allow them to qualify for Hollywood's awards. It would also offer Amazon a way to expand its subscription ecosystem.
As social distancing rules continue due to the coronavirus pandemic, movie theaters are gaining attention. Yahoo Finance’s Alexis Christoforous and Brian Sozzi speak to Beth Wilson, owner of the Warwick Drive-In, as she prepares to reopen on Friday.
Investors need to pay close attention to AMC Entertainment (AMC) stock based on the movements in the options market lately.
Shares of movie theater operator AMC Entertainment (NYSE: AMC) tumbled more than 10% today, after Federal Reserve Chairman Jerome Powell weighed in on the prospects for an economic recovery and promptly scared the heck out of everyone. Powell's comments today, however, threw all the wet towels on that idea, saying it was "highly uncertain" the economy would quickly bounce back. AMC Entertainment has been on tenterhooks since the pandemic began and its movie theaters were closed.
AMC Entertainment (AMC) first-quarter top line is likely to have been impacted by dismal performance at the admissions, food and beverage, and other theatre segments.
Shares of AMC Entertainment (NYSE: AMC) soared 30% on Monday after a Daily Mail report indicated that Amazon (NASDAQ: AMZN) was potentially interested in buying the world's largest movie theater chain. Amazon was reportedly in talks to acquire Landmark Theatres in 2018, so it's not outlandish to think of the leading e-tailer making a play for a multiplex operator. After the $13.7 billion deal for Whole Foods Market in 2017, it may seem as if anything is possible for Amazon.
The stock market put in a mixed showing on Monday, with most benchmarks bouncing back from early losses to end the day in the black. Market participants are still uncertain about what the next several months will look like for the global economy, especially as some state and local governments roll the dice and try to return to normal. The Dow Jones Industrial Average (DJINDICES: ^DJI) wasn't able to get out of the red by the end of the day, but the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) posted modest gains.
Stocks fell Monday, pausing after last week’s rally, as a growing number of countries and U.S. states planned or began the process of phasing out stay-in-place measures.
AMC Entertainment's stock is soaring after the U.K.’s Daily Mail reported Amazon expressed interest in buying the movie theater chain. Yahoo Finance’s Dan Howley joins Seana Smith to discuss.
(Bloomberg Opinion) -- As Amazon.com Inc. approaches the third anniversary of its Whole Foods Market acquisition, there’s speculation that the tech giant could set its sights on AMC Entertainment Inc. for its next oddball deal. But modernizing an already popular supermarket and luring shoppers with discounts on avocados isn’t the same as running a movie-theater chain — that would amount to a rescue mission. If Jeff Bezos wants to deepen his Hollywood ties, why not buy a studio instead? Amazon is said to have studied a deal for AMC and the two sides may have held talks, according to a May 9 report in the British newspaper the Daily Mail citing unnamed sources. Deadline later contradicted the story, saying there aren’t any discussions. This may turn out to be a case in which investor hope, rather than deal logic, was informing a rumor. AMC is the largest cinema operator in the U.S. and Europe, where it owns the Odeon & UCI circuit. That purchase, along with the takeover of its U.S. rival Carmike Cinemas and a costly theater renovation streak, has left AMC with a large debt burden that now threatens to topple the company as most of its cinemas remain closed due to the Covid-19 outbreak. The dwindling box office isn’t just a temporary quarantine-related problem. A nearly doubling in the price of movie tickets over the last two decades has masked an otherwise gradual decline in patronage. After regional stay-at-home orders lift, prolonged virus fears and a continued shift toward at-home video streaming will take even more of a toll. Studios are beginning to experiment with on-demand releases that are either concurrent with theatrical debuts or skip movie houses entirely, as Universal Studios chose to do with its “Trolls World Tour” premiere last month. Though AMC does sell its own on-demand movie access through the new Theatres On Demand platform, Amazon Prime Video is already a more established destination.What Amazon would be buying is a heap of debt and empty auditoriums. And what in the world is Bezos going to do with 11,000 exhibition screens? If the future of entertainment is streaming content, then a company like AMC Networks — the channel known for “Breaking Bad” and “The Walking Dead” — is a much more fitting candidate than AMC theaters. But even AMC Networks, which is valued at just $1.3 billion, may still be too niche for Amazon’s needs.If Bezos truly wants to dominate in streaming entertainment, he should think about acquiring a Hollywood studio. Lions Gate Entertainment Corp., ViacomCBS Inc.’s Paramount Pictures, Sony Pictures and Metro-Goldwyn-Mayer Inc. are all options and may be willing sellers. They could help provide the must-see content that Amazon needs more of to drive interest in its Prime Video service. As of now, the “free” movies and shows available to Prime members are more of an extra feature that’s nice to have, but easily forgotten about. In fact, more than three-quarters of Amazon Prime Video members still use Netflix, according to research firm MoffettNathanson LLC. The same argument can be made for Apple Inc. as it invests in the Apple TV+ service, as I wrote last year.Before June 2017, no one could have predicted that Bezos, a tech mogul, would scoop up the Whole Foods grocery chain for $13.6 billion and that it would be his largest takeover ever. Even now, the affiliation with Amazon hasn’t done much to change the Whole Foods shopping experience. It’s possible that Bezos sees some hidden value in cinemas, but the connection is even less clear than it is with supermarkets. What’s more likely is that Bezos is thinking about the future, where more is done remotely on our devices — especially TV viewing. In that case, Bezos doesn’t need a whole bunch of reclining seats, he needs eyeballs and something to show them.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AMC Entertainment shares skyrocket on reports that Amazon will buyout the movie theater chain. Yahoo Finance’s Dan Roberts weighs in.
(Bloomberg) -- AMC Entertainment Holdings Inc. jumped as much as 56% on a media report that Amazon.com Inc. has discussed a potential takeover of the largest U.S. movie-theater owner, though it pared the gains when another outlet said the companies aren’t talking.It’s unclear if the talks are active or will lead to a deal, the U.K.’s Mail on Sunday newspaper said, citing unidentified sources. Amazon doesn’t comment on speculation, a spokeswoman said Monday. AMC didn’t immediately respond to requests for comment.The trade publication Deadline reported Monday morning that “there are no talks,” citing unidentified sources.AMC shares rose as much as $2.31 to $6.41 in New York trading. They were up as little as 19% minutes after the Deadline report and were up 36% to $5.58 at 11:28 a.m. The stock was down 43% this year through last week, battered along with the rest of the cinema industry by a worldwide shutdown for the coronavirus pandemic.AMC’s bonds surged on reports of the talks with Amazon, and were among the top gainers in the U.S. high-yield market on Monday, according to Trace bond-trading data. AMC’s senior subordinated bonds due 2026 were up as much as 10 cents on the dollar to 32 cents, data shows.The reported talks are unlikely to spark a price war for AMC, Bloomberg Intelligence media analyst Amine Bensaid said in a note. “Movie-going is unlikely to fully bounce back in a post-Covid-19 world and may create risks for an acquirer,” he said. “AMC’s elevated debt load and unavoidable fixed costs mean the company’s near-term financial flexibility will be severely challenged.”AMC showed its concern about existential threats with its reaction to last month’s straight-to-streaming release of the kids movie “Trolls World Tour,” which Comcast Corp.’s Universal Pictures crowed about as a high-grossing success. AMC said it would no longer show Universal’s movies.Chinese real estate tycoon Wang Jianlin, who spent billions of dollars building one of the world’s biggest cinema operators, controls AMC through his closely held Wanda Group. Wanda acquired AMC in 2012 for $2.6 billion as part of its expansion into entertainment. It subsequently acquired Nordic, Carmike and Odeon & UCI Cinemas.Along with its vast retail and web-services operations, Amazon is an active player in streaming with its Prime Video platform, along with releasing original films. Like Netflix Inc., Amazon is eager to shore up its burgeoning position in Hollywood as new and old players scrap for content deals. Buying a theater chain would guarantee another outlet for its movies.Eric Wold, an analyst at B. Riley FBR, wrote to clients Monday that a cash offer for AMC, which is on track for its fourth straight year of stock declines, wouldn’t appeal to investors. A cash offer would be more likely than a stock deal, given AMC’s depressed stock price, he said.(Updates with Deadline report in third paragraph, bonds in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of AMC Entertainment (NYSE: AMC), the world's biggest movie theater operator, were soaring today on a report in the Daily Mail that Amazon (NASDAQ: AMZN) was considering buying the movie theater chain. Like much of the entertainment industry, AMC stock has fallen sharply during the pandemic as its theaters in the U.S. and much of the rest of the chain remain closed, and its future is highly certain. Such a deal would significantly elevate Amazon's position in entertainment, as the company has long been active in video streaming and also has a strong business in connected TV devices with products like Amazon Fire TV and Fire TV Stick.
(Bloomberg) -- Late on Friday, after some 48 hours of frantic attempts to lure investors to their faltering bond sale, executives at United Airlines let it be known that the deal was dead.It was an odd moment, stuck smack in the middle of one of the busiest corporate bond booms ever, a period in which investors have shown themselves to be receptive to almost any debt offer backed by good collateral. But this last part was where United got in trouble. For collateral, it had scraped together 360 old jets, some of which analysts considered would be nearly worthless in a few years.In balking at the deal, investors sent a clear message to CFOs across the country: Don’t try to pawn second-tier assets. Bring us the crown jewels because, regardless of how much Washington policymakers are helping corporate America weather the economic shutdown, the risk of default remains high for all but the most financially solid companies.“All collateral is not created equal,” said John McClain, a money manager at Diamond Hill Capital Management.United Airlines’ attempt to raise $2.25 billion of bonds follows efforts by other virus-stricken companies to mortgage anything they can get their hands on to persuade debt investors to lend them money. In a bid to replace revenue wiped out by the virus pandemic, they’ve pledged private islands in the Caribbean and the Bahamas, cruise ships, movie theaters and even spare engines.Collateral has been an important safeguard for investors, who have bought billions of dollars of debt from struggling companies in recent weeks. They can seize it if a borrower falters and can’t pay them back in cash. But the United deal shows investors have their limits in who they’ll lend to.“The collateral issues were too difficult to overcome,” Roger King, an analyst at debt research firm CreditSights, said of the United deal. Borrowers “keep throwing stuff overboard, hoping they can reach the port before there’s nothing left,” he said, likening it to the book “Around the World in 80 Days.”Companies have been furiously tapping the bond market to shore up liquidity, following unprecedented action by the Federal Reserve last month pledging to buy certain debt. The companies are in dire enough shape that the secured-debt deals are essentially “quasi-rescue trades,” said Ben Burton, head of U.S. leveraged finance syndicate at Barclays Plc.There’s nothing unusual about struggling borrowers posting swathes of assets against their borrowings. Ford Motor Co. had to mortgage virtually everything it had in 2006 to avoid bankruptcy, arranging some $23.4 billion of debt by putting up all major assets including its blue oval logo. It’s also not unusual for borrowers and lenders to joust over the value of the collateral and whether it’s even accessible to claim.But in the current depressed environment, even seemingly highly prized collateral is leaving some investors cold. Demand for United Airline’s bonds, for which unofficial price discussions rose to a yield of about 11%, had been weak over the concerns that its collateral wasn’t valuable enough to compensate for the risks.The aircraft had an average life of 19 years, making them less efficient and more of a liability, according to CreditSights’ King. They’re also about five years from retirement, meaning they could be out of operation and “worth little more than the engines” before a portion of debt matures. That could render investors undersecured, he said.Vince Pisano, a senior analyst at Xtract Research, said the $4.3 billion appraised value of the aircraft also raised a few eyebrows for him.If the company went under, he said, “who is going to want to or be able to pay that amount? Think a private equity firm is going to want to start a new airline and pay those prices?”Before pulling the deal on Friday, United had sweetened terms in a bid to attract investors. It also added a clause that would trigger repayment of the bonds at a substantial premium to par, known as a make-whole, should the company file for bankruptcy. And while the pulled deal dims the company’s funding prospects, it still has a $2 billion one-year loan giving it some breathing room. It had about $9.6 billion of liquidity as of April 29.Companies in the entertainment business are also putting up their core holdings to induce investors. Theme park company Six Flags Entertainment Corp. sold $725 million of secured bonds in April, pledging its theme parks and water parks.AMC Entertainment Holdings Inc. sold $500 million of bonds last month and backed them with collateral including movie theaters, according to a person familiar with the matter. That bond has since sunk to about 80 cents on the dollar, according to Trace pricing. AMC’s prospects have looked bleak, forced like its rivals to close cinemas and furlough workers. For weeks, the company faced pronouncements from analysts and trade publications that it’s on the brink of bankruptcy.Norwegian Cruise Line Holdings Ltd. put up its Great Stirrup Cay island in The Bahamas and Harvest Caye island off the coast of Belize to help sell $675 million of debt, according to a person familiar with the matter. The real estate was appraised with a market value of $260 million, though Norwegian said the investment value should be nearly three times that, based on the destinations’ importance for its cruise operations and future cash-flow.Even with a hefty 12.575% yield, investors were taking a risk. Norwegian Cruise had indicated it may not survive the disruption and, like rival operators, has suspended operations through June 30. Many analysts fear the cruise industry will take longer to recover, if at all, tarred by virus outbreaks on ships at sea. Norwegian is offering a three-day Bahamas round-trip cruise from Miami from $149.Norwegian said the bond sale and other transactions alleviate worries about its ability to continue as a going concern for the next 12 months.Last month, another cruise operator, Carnival Corp., sold $4 billion in bonds backed by 86 of its cruise ships and intellectual property valued at almost $29 billion, according to documents seen by Bloomberg News. It was unclear if any of the ships that had outbreaks of the virus were included in the 86 vessels.Delta Air Lines Inc. raised $5 billion of bonds and loans backed by slots at some of the world’s busiest airports, as well as flight routes in Europe and Latin America. While they are valuable to airline business and don’t depreciate over time, King argues that there are questions over their true ownership, meaning investors might not be able to benefit from this collateral come crunch-time.While these assets can provide liquidity for companies, “investors must be discerning and understand their ability to take possession and resell in the event of default,” said Diamond Hill’s McClain.Now that companies have put a lot of their assets up as collateral, many of them may face big hurdles if they go back for another round of financing.“The degree to which companies will be able to hold back on unencumbered assets for double dips later depends on how stressed of a situation it is,” Barclays’s Burton said. “If they have to come back, some will be able to, but others will have to find other sources of capital if they need more money.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AMC Entertainment (AMC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.