AMC Entertainment’s (AMC) shares soared nearly 23% in price on Friday after the release of the ‘Spider-Man: No Way Home’ movie. However, can this momentum be sustained amid increasing competition from online streaming service providers? Read on.Shares of the largest theatrical exhibitor, Leawood, Kans.-based AMC Entertainment Holdings, Inc. (NYSE:AMC) surged nearly 23% in price on Dec. 17 thanks to its highest December night opening ever with a record 1.1 million people attending the premiere of ‘Spider-Man: No Way Home.’
Its total revenues increased 538.7% year-over-year to $763.20 million in the third quarter (ended September 30, 2021). Its net loss came in at $224.20 million compared to $905.80 million. However, its negative $5.40 million adjusted EBITDA was well below pre-pandemic levels. The stock has declined 30.9% in price over the past month and 34.1% over the past three months to close Friday’s trading session at $29.12.
AMC faces intense competition from online streaming service providers, such as Amazon.com, Inc.’s (NASDAQ:AMZN) Prime Video and Netflix, Inc. (NASDAQ:NFLX). Also, its shares have retreated as the meme stock frenzy has ebbed amid broader market volatility and a lower appetite for risky assets. So, its near-term prospects look bleak.