It’s another risk-on day on Wall Street. Shares of the most economically-sensitive firms were rallying, while many of the coronavirus market’s biggest winners were in the red on Wednesday.
Movie theater chain AMC Entertainment Holdings Inc (NYSE: AMC) is reportedly in the crosshairs of Amazon.com, Inc. (NASDAQ: AMZN) as the e-commerce giant is looking to use it as a testing ground for its movies.Why Cramer Thinks It Will HappenAMC CEO Adam Aron is a "miracle worker" who could be working on a "miracle" by generating some value for investors through a buyout, according to Jim Cramer. The acquisition may not do much to help the movie theater chain over the long term, however, similar to Amazon's acquisition of Whole Foods.All Amazon essentially did to change Whole Foods' business is the addition of lockers for delivery pickups, Cramer said: "They didn't do much."See Also: PreMarket Prep Stock Of The Day: AMC EntertainmentWhy Barrington Research Is OptimisticThe combined enterprise value of AMC is less than $5 billion with the majority of the value in the form of debt, Barrington Research analyst James Goss wrote in a note. As such, an acquisition by Amazon would "clearly be relatively modest."Meanwhile, Dalian Wanda holds a 75% voting interest in AMC and its management involvement is "described as fairly passive." So the ultimate sale would be at their discretion.From a regulatory point of view, Goss said Amazon buying AMC would pose fewer challenges than if one of the major studios was making the purchase. Amazon's ambitions to showcase its films on the big screen are "much smaller" and mostly focuses on TV series.It remains to be seen if Amazon's control of a movie theater chain would generate long-term value given the ongoing COVID-19 threat and a questionable recovery in a post-pandemic world. Nevertheless, Goss said Amazon can throw AMC a "lifeline" backed by its own "compatible interests" and such a move would be an attractive option for investors.AMC Price ActionAfter trading higher by more than 20% on Monday, shares of AMC Entertainment were trading higher by 2.8% at $5.47 on Tuesday afternoon.Latest Ratings for AMC DateFirmActionFromTo Apr 2020Imperial CapitalMaintainsIn-Line Apr 2020B. Riley FBRUpgradesSellNeutral Apr 2020Imperial CapitalDowngradesOutperformIn-Line View More Analyst Ratings for AMC View the Latest Analyst Ratings See more from Benzinga * Coronavirus Drives Surge In Online Grocery Penetration For Players Like Amazon Prime Now, Walmart * Stifel Downgrades Wayfair After Q1 Print, Says Coronavirus Sales Surge Will Dissipate * 3 Analyst Takes On eBay After 'Big Improvement' In Q1(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As coronavirus restrictions lift, one expert says 'simply opening the doors will not be enough.'
The rumor makes sense: E-commerce giant Amazon (NASDAQ: AMZN) has shown interest in the movie industry in the past, and as long as the audience for Amazon Studios' productions is limited to Prime members, the company is leaving money on the table. If it acquired movie-theater giant AMC Entertainment (NYSE: AMC), Amazon would shift into the mainstream of the film industry, and its ability to screen its releases would allow them to qualify for Hollywood's awards. It would also offer Amazon a way to expand its subscription ecosystem.
In fact, if new movies were available in both theaters and on streaming services for the same price right now, 70% of people would still choose to stream the first-run feature at home over going to a movie theater, according to a new survey published in Variety. More than one-third (37%) of respondents said that they will go to movie theaters less often in the future, and 10% said they may never go to the cinema again. The survey of about 1,000 people conducted in mid-May by sports and events analytics firm Performance Research, in partnership with Full Circle Research Co., found that anxieties about health and safety in crowded, public places trumps the growing urge to get out of the house that’s been seen in scattered protests across the country.
With the original fan favorite TV series The Walking Dead wrapping up its final season, AMC Entertainment (NYSE: AMC) now has a fairly likely timetable for the franchise to rise from the grave in the spinoff series The Walking Dead: World Beyond. Talking with Hollywood Reporter, AMC's Chief Operating Officer Ed Carroll revealed a probable air date in the fourth quarter of 2020. Both the last episode of The Walking Dead and the start of World Beyond were filmed prior to the coronavirus-related shutdown.
A survey shows 70% of people prefer new movie releases as digital in-home rentals, and it's not the only problem for theater operators like AMC.
Fathom Events, alongside Screen Media, a Chicken Soup for the Soul Entertainment company, announced today it will return to theaters with a first-run film this summer with Millennium Media and Rod Lurie's military thriller, THE OUTPOST, a true story based on Jake Tapper's best-selling non-fiction book, The Outpost: An Untold Story of American Valor. This exclusive event is scheduled to begin on July 2, 2020, on approximately 500 screens, followed by a weeklong limited theatrical run starting July 3, 2020. Each screening will be accompanied by a special introduction from select cast members and exclusive behind-the-scenes footage.
Shares of movie theater operator AMC Entertainment (NYSE: AMC) tumbled more than 10% today, after Federal Reserve Chairman Jerome Powell weighed in on the prospects for an economic recovery and promptly scared the heck out of everyone. Powell's comments today, however, threw all the wet towels on that idea, saying it was "highly uncertain" the economy would quickly bounce back. AMC Entertainment has been on tenterhooks since the pandemic began and its movie theaters were closed.
The whispers may or may not be accurate, but even if they aren't, there's some merit to the idea.
Investors need to pay close attention to AMC Entertainment (AMC) stock based on the movements in the options market lately.
AMC Entertainment (AMC) closed at $4.58 in the latest trading session, marking a -1.08% move from the prior day.
As social distancing rules continue due to the coronavirus pandemic, movie theaters are gaining attention. Yahoo Finance’s Alexis Christoforous and Brian Sozzi speak to Beth Wilson, owner of the Warwick Drive-In, as she prepares to reopen on Friday.
Yahoo Finance's Alexandra Canal breaks down how coronavirus second wave fears could impact live events.
Shares of AMC Entertainment (NYSE: AMC) soared 30% on Monday after a Daily Mail report indicated that Amazon (NASDAQ: AMZN) was potentially interested in buying the world's largest movie theater chain. Amazon was reportedly in talks to acquire Landmark Theatres in 2018, so it's not outlandish to think of the leading e-tailer making a play for a multiplex operator. After the $13.7 billion deal for Whole Foods Market in 2017, it may seem as if anything is possible for Amazon.
Investors need to pay close attention to AMC Entertainment (AMC) stock based on the movements in the options market lately.
AMC Entertainment (AMC) first-quarter top line is likely to have been impacted by dismal performance at the admissions, food and beverage, and other theatre segments.
Shares of AMC Entertainment Holding Inc. ran up 4.4% in morning trading Wednesday, after MKM Partners analyst Eric Handler backed off his bearish stance on the movie theater chain, saying the near-term risk of a bankruptcy has "lessened considerably." Handler raised his rating to neutral, after cutting it to sell on April 9, and raised his stock fair value estimate to $5 from $1. He said the bankruptcy risk has been reduced given the increasing likelihood that theaters in the U.S. and Europe will be able to reopen in the July-August time frame with new Hollywood content, and the because of AMC's improved liquidity position. "We are still concerned about AMC's net leverage and absolute level of debt, but believe with the expected re-opening of the company's circuit within the next two months there is sufficient cash on hand to get through the end of the year," Handler wrote in a note to clients. The stock has more than doubled (up 157%) since it closed at a record low of $2.08 on April 13, as the company announced a measures to boost liquidity in April and after a report last month that Amazon.com Inc. had expressed interest in buying the company. The stock has still lost 26.3% year to date, while the S&P 500 has declined 7.0%.
Shares of AMC Entertainment Holdings Inc. rocketed on heavy volume Monday, after a media report that the struggling movie theater chain had held buyout talks with Amazon.com Inc., as AMC’s value has shrunk since the COVID-19 pandemic led to theater shutdowns worldwide.
The contrast between the fortunes of the world’s largest online retailer and the world's biggest movie theater operator during the COVID-19 pandemic could not be greater.Amazon (AMZN) has sailed through the global crisis, intrinsically well set up to benefit from the current situation. While AMC (AMC) displays all the hallmarks - currently shut down, entirely reliant on large gatherings - of a company struggling to make it through the worldwide crisis.But a recent report has linked the two together. The Daily Mail reported that the two companies have been discussing a potential takeover of the beleaguered exhibitor by the e-commerce giant.The rumors were good news for long suffering AMC shareholders, as the report sent shares soaring by 30% in yesterday’s trading session.Do the rumors make sense? According to B Riley analyst Eric Wold, they do, if you’re Amazon.Wold noted, “With Amazon not dependent on any other release windows beyond its own subscription service (other than to qualify for industry awards), we would view increased control over the theatrical window through the acquisition of a large exhibitor as providing Amazon both an incremental earnings stream from its own films and an attractive marketing vehicle to drive additional subscribers being exposed to the studio's films—something that, we believe, other studios would be comfortable with them doing.”But what about for AMC? Here the issue is more nuanced. Even before the pandemic decimated the movie theater world, AMC was highly leveraged, already at war with the emerging streaming market and now appears only a few steps away from bankruptcy. So you would think a buy-out would be beneficial for AMC, too. But on top of the regulatory hurdles, Wold remains skeptical whether a transaction based on AMC’s current low valuation and the accompanying terms (likely a cash rather than stock-based deal) would appeal to major AMC shareholders.All said, Wold maintains a Hold rating on AMC shares along with a $4 price target, indicating about 25% downside from current levels. (To watch Wold’s track record, click here)The rest of the Street appears no more optimistic. Based on 7 Holds and 3 Sell ratings, the analyst consensus rates AMC a Moderate Sell. The average price target is well below Wold’s, and at $3.33 implies a decline of 38% over the coming months. (See AMC stock analysis on TipRanks)Read more: * 3 “Strong Buy” Dividend Stocks That Look Great After Earnings Beat * 2 Cruise Line Stocks to Bet on After the Coronavirus Crisis (And 1 to Avoid) * 3 Stocks Needham’s Top Analysts Are Raving About