It's Not All Hype, AMC Seeing Recovery In Foot Traffic: Data Analytics Firm

AMC Entertainment Holdings Inc. AMC is “certainly in the midst of a recovery,” even as the movie theatre chain’s shares continue to see strong interest from retail investors, according to data analytics firm Placer.ai.

What Happened: Placer.ai noted that AMC Entertainment is seeing a slow but consistent improvement in foot traffic.

While monthly visits to AMC locations in May this year were down 68.5% compared to May 2019, it represented an improvement from April when the visit gap was at 70%. May marked the strongest showing for AMC since the start of the pandemic in 2020, according to Placer.ai.

See also: How to Buy AMC Stock

Foot traffic to AMC locations nationwide over Memorial Day was down by about 49% compared to the same period two years ago, according to Placer.ai. Still, AMC Entertainment performed slightly better than its main rival Regal Cinemas, which recorded a 60.3% drop in visits compared to Memorial Day 2019.

See Also: AMC, Cinemark, Marcus, Imax: How Do The Cash Balances Of Top Movie Theater Chains Compare?

Why It Matters: AMC Entertainment has managed to avoid bankruptcy amid the pandemic and reopened 98% of its locations in March.

Last month, CEO Adam Aron expressed optimism about AMC Entertainment’s prospects, noting that the movie theatre chain was able to attract about 7 million U.S. and international moviegoers to its theatres in the recent first quarter.

Shares of AMC and other stonks, or stocks favored by retail investors, have seen volatility in recent days as these investors attempt a new short squeeze.

AMC Entertainment has skyrocketed a whopping 2,764.6% since the year began and its valuation shot past fellow stonk GameStop Corp. GME earlier this month amid increasing interest from retail investors.

Price Action: AMC Entertainment shares closed more than 10% higher in Thursday’s trading session at $60.73.

Read Next: AMC, Clean Energy Fuels, BlackBerry Continue To See High WallStreetBets Interest; Corsair, Petco See Drop

Photo by Andreas Praefcke on Wikimedia