AMC Entertainment (AMC) stock surged 5.09% in intraday trading on Wednesday, as investors reacted positively to optimistic projections for the North American box office in 2025. The rally comes amid a broader reassessment of the cinema industry's resilience and growth potential.

According to a recent Wedbush report, North America's box office is expected to grow by 7% year-on-year, reaching $9.1 billion in 2025. This projection is based on the "compelling" and "genre-balanced" lineup of films for 2025 and 2026 showcased by major studios at CinemaCon. The report highlights the historical resilience of the theater business during economic downturns, describing it as a "relatively inexpensive escape from reality" for consumers.

Wedbush analysts have expressed a warming sentiment towards AMC, noting that its shares have fallen below their price targets due to "perceived economic weakness." However, they argue that this decline overlooks "favorable industry tailwinds in a typically recession-resistant space." This reassessment, combined with the positive box office growth projections, appears to have sparked renewed investor interest in AMC, driving the stock's significant uptick.