Shares of AMC Entertainment Holdings Inc. experienced a boost on Thursday following the announcement of an upcoming Taylor Swift movie set to hit theaters in October. Despite this positive news, the stock continues to face challenges during what has been a difficult summer for investors.
The concert film, titled "Taylor Swift: The Eras Tour," is scheduled to open on October 13. Tickets are now available for purchase on both the AMC theater chain's website and Fandango.com.
"This marks the start of a new venture for AMC Entertainment," stated AMC in a recent press release. Not only will they be screening "Taylor Swift | The Eras Tour" in their own theaters, but they will also serve as the theatrical distributor, coordinating with various other movie theater operators across the United States, Canada, and Mexico.
Following the announcement, the stock saw a 3.6% surge in morning trading, building on a 16.7% increase the previous day. However, these gains come after the stock hit its lowest price since January 6, 2021 - $10.91.
Despite the recent rally, AMC's stock has plummeted by 69.9% in August, making it the largest monthly percentage decline since the company went public in December 2013. Since Memorial Day, the stock has shed 67.8%, while the S&P 500 index has climbed 7.7%.
It is important to highlight that free movie passes will not be accepted for this event, and AMC Stubs members will not be able to use their membership benefits to reserve tickets.
AMC has assured customers that its website has been upgraded to handle increased traffic. Despite these improvements, there may still be delays or outages during the ticket-buying process.
In comparison to other movie theater operators, Cinemark Holdings Inc.'s stock saw a 1.9% gain on Thursday but has experienced a 1.9% decline in August. Additionally, shares of Imax Corp. rose by 2% during the same period and have gained 5.1% this month.