Shares of AMC Entertainment Holdings sank on Monday to extend a long losing streak, as investors paid little attention to the movie-theater chain’s announcement that it just scored its biggest pre-Christmas-weekend box office in four years.
Instead, investors appeared to focus on the company’s funding issues, as AMC disclosed the latest amendment to its terms of debt securities, which include the potential for more open-market sales of common stock.
AMC’s stock dropped 2.9% to close Monday at $1.70. For what was once one of the original meme stocks, that was not only the 10th straight decline, which is the longest such stretch since the 11-session streak that ended Jan. 27, 2022, it also closed at a record low for a sixth straight session.
The selloff continued even as the company said that based on attendance at its movie theaters and admissions revenue, it had the best pre-Christmas holiday weekend since 2021. The strength was led by Walt Disney Co.’s “Avatar: Fire and Ash,” which reported a domestic box-office haul of $88 million over the past weekend, the seventh-highest ever for an opening weekend in December, according to Box Office Mojo.
AMC also said it was the first weekend in 2025 in which there were five movies that had a domestic box office of at least $14 million each. The movies on that list, other than “Avatar,” were “David,” “The Housemaid,” “The SpongeBob Movie: Search for SquarePants” and “Zootopia 2,” which debuted in late November.
Also on Monday, the company disclosed in an 8-K filing with the Securities and Exchange Commission that it will pay $6.25 million to the holders of its exchangeable notes due 2030, in the form of AMC common stock, for agreeing to certain amendments to the debt agreements.
The company may also conduct one or more “at-the-market” offerings of common stock for cash, with proceeds not to exceed $150 million.
The amendment comes less than two months after the company reported third-quarter admissions revenue that fell about 4% from a year ago, and concessions revenue that slid nearly 8%, as well as its eighth straight quarterly net loss, according to FactSet data. The net loss for the quarter had jumped to $298.2 million from $20.7 million a year ago, mainly because of charges related to a debt-restructuring deal announced in July.
The stock has now tumbled 26.7% during its current losing streak. It has also slid 30.6% so far in December, to put it on track for its worst monthly performance since it shed 33.8% in January 2024.
AMC’s closing price of $1.70 on Monday was a far cry from its meme-induced record-high close of $339.05 seen on June 2, 2021.
Keep in mind that the day before the company’s 1-for-10 reverse stock split, aimed at raising its share price, went into effect on Aug. 24, 2023, the stock had closed at a pre-split price of $1.96.