What Happened?

Shares of theater company AMC Entertainment (NYSE:AMC) jumped 6.1% in the pre-market session after the company posted a strong fourth-quarter 2024 performance, far surpassing analysts' EBITDA forecasts, with adjusted EBITDA more than tripling from last year. Revenue also beat Wall Street estimates, fueled by a strong box office lineup and a 20% jump in attendance. However, despite solid revenue and EBITDA gains, EPS fell well below expectations. Overall, this was a mixed yet decent quarter.

After the initial pop the shares cooled down to $3.38, up 2.9% from previous close.

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What The Market Is Telling Us

AMC Entertainment’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

AMC Entertainment is down 16% since the beginning of the year, and at $3.38 per share, it is trading 50.7% below its 52-week high of $6.85 from May 2024. Investors who bought $1,000 worth of AMC Entertainment’s shares 5 years ago would now be looking at an investment worth $64.50.

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