Can Spider-Man Save AMC Theaters?

Ever since the pandemic first started, AMC Entertainment Group (NYSE:AMC) has been nothing short of a controversial stock. 

Given that watching movies involves having large groups of people inside a medium-sized space, it stands to reason that customers remain skeptical about their return to cinemas. Because of that, AMC has seen some serious losses with each passing quarter.

Sure, every now and then, there’s a film release that brings our hopes up. A potential sign of AMC becoming what it used to be. 

Such was the case with Spider-Man: No Way Home this past month. 

But therein lies a question. Can a single film achieve such a thing? 

And if so, can Spider-Man do it?

Spider-Man, Savior… Or Menace?

In 2020, AMC’s revenue dropped from $5.4 billion to $1.2 billion. Fast-forward to the company’s most recent quarter, and it ended with up to $202 million in bottom-line losses in addition to a loss of $313 million in cash operations.

It was at this moment that AMC needed a hero. Luckily, Spider-Man was there to answer the call.

Up until now, Spider-Man: No Way Home has generated about $1.54 billion in box office revenue. 

Keep in mind, that’s on a worldwide scale. After accounting for film studio and film theatre percentages, that means that AMC can earn up to $600 million in revenue for this singular film. 

But what about the upcoming months? Does this mean that AMC is a safe investment once again? 

Spider-Man: No Way Home was a widely expected release. If you compare it to other simultaneous releases and even some other Marvel movies, it was one of a kind. 

But before it came into the picture, AMC was already dealing with poor performance.

In retrospect, this is but a great month into what could be a mediocre month, and maybe even a mediocre year. The only way this could signify a true change is if every other upcoming release were to be of a similar calibre. 

To simply put it, Spider-Man was the hero AMC needed, but there’s a clear limit to how much he can help. Although, this surely is a step in the right direction, so perhaps we are closer than ever to the company stabilizing.

Having said that, we still can’t recommend AMC as an investment opportunity. Not today.