- AMC surged on Tuesday after the movie theater chain saw a surge in attendance over the long weekend.
- AMC benefited from the long-awaited opening of Top Gun: Maverick, which broke Memorial Day weekend records.
- The Top Gun sequel brought in more than $156 million at the box office over the weekend and drove 3.3 million guests to AMC theaters.
The long-awaited release of the sequel to Top Gun sent shares of AMC Entertainment soaring on Tuesday after the movie broke box office records.
AMC Entertainment stock jumped as much as 10% as investors sized up the $156 million haul Top Gun: Maverick delivered for US movie theaters over the long weekend, which is a Memorial Day weekend record.
The movie was originally slated for a 2020 release, but was delayed by two years due to the COVID-19 pandemic. That delay translated into strong pent-up demand.
AMC said 3.3 million guests watched the Top Gun sequel at one of its movie theater locations, and more than 5 million guests went to its theaters over the weekend. That represents a massive year-over-year surge of nearly 100%.
Also boosting morale for movie theater investors are estimates that 55% of movie ticket purchasers were over the age of 55% this weekend, signaling that older demographics are returning to theaters after getting used to streaming services during the pandemic.
"This is two-and-a-half times the biggest Tom Cruise [movie] opening ever. We're just euphoric," AMC Entertainment CEO Adam Aron told CNBC on Tuesday.
Aron expects the movie strength to continue for the rest of the year, pointing to the expected blockbuster releases of Jurassic World: Dominion, Minions 2, and Avatar 2, among others.
Tuesday's surge in AMC stock extends a week-long rally of more than 50%, as meme-stocks have seen a revival amid an ongoing stock market bounce. GameStop also saw a multi-day surge as investors shift to a more risk-on stance heading into the summer.
But whether the rally lasts remains to be seen, as AMC has been in a clear downtrend since its peak at about $72 last year. AMC stock is down 42% year-to-date, and is down 78% from its 52-week high.