Shares of AMC Entertainment Holdings Inc. experienced a notable increase of 8.1% on Monday, putting an end to a three-day losing streak. This surge marks the largest daily percentage gain for the stock since October 6, when it saw an impressive 11.6% increase.
The movie-theater chain, which has gained popularity as a meme-stock favorite, has greatly benefitted from the release of Taylor Swift's record-breaking concert film, "Taylor Swift: The Eras Tour," which premiered on October 12. According to Comscore data, the film was predicted to surpass $200 million in global box office revenue by Sunday. Since its release, "Taylor Swift: The Eras Tour" has already generated an estimated $203 million worldwide, making it the first pure concert film in history to exceed the $200 million mark in global box-office receipts, as reported by Comscore on Sunday.
AMC's Role in the Success
In addition to screening "Taylor Swift: The Eras Tour" in their theaters, AMC holds the theatrical distribution rights for the film. They have also partnered with other distribution companies such as Variance Films, Trafalgar Releasing, Cinepolis, and Cineplex Inc. to secure deals with over 8,500 global theaters that will showcase the film.
The film's popularity was already evident even before its scheduled release on October 13, leading to additional showings being added. Swift herself took to Twitter on October 11 to announce early access showings on October 12, citing the "unprecedented demand" for the movie.
Strong Showings Impact AMC Stock Performance
Despite a 72.5% decline in AMC shares in 2023, as compared to the S&P 500 index's gain of 8.7%, the release of "Taylor Swift: The Eras Tour" has provided a much-needed boost to the struggling stock.