The entertainment industry suffered massively during the coronavirus pandemic and it was no surprise that movie theatre operator AMC Entertainment Holdings (NYSE:AMC) recorded an 84.2% year-on-year decline in revenues in the first quarter.
Revenues came in at $148.4 million and on top of that, the cash flow generated from operations collapsed by 129% to a $312.9 million loss. Despite that, the AMC stock has performed impressively over the course of the past few days.
The reason behind that is the fact that the company boasts of total liquidity of $1.4 billion and that can work as a cushion for its current troubles. In addition to that, investors possibly believe that AMC is going to have a major rebound when theatres open in a big way eventually. After masking rules and social distancing measures are in the past, it might be possible for AMC to match its pre-pandemic revenues. That might be the reason behind the bullish sentiments for its stock.
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Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.