AMC Entertainment drops during broad market selloff to close the week
- NYSE:AMC fell by 2.75% during Thursday’s trading session.
- AMC’s investment in Hycroft Mining does not make the stock a buy.
- The long weekend will be a pivotal battle at the box office.
NYSE:AMC closed the abbreviated trading week lower as the theater chain stock gave up a further 8.53% over the past five trading days. On Thursday, shares of AMC fell by 2.75% and closed the last trading session before Easter at $18.02. US markets posted another losing week as all three major indices lost ground once again. To close the week, the Dow Jones fell by 112 basis points, the S&P 500 dropped by 1.21%, and the NASDAQ sank by 2.14%, as the major averages erased any gains made during Wednesday’s session.
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Retail traders who gobbled up shares of Hycroft Mining (NASDAQ:HYCM) after AMC invested in the struggling company may be regretting their purchase. The Nevada-based mining company had fallen on hard times before AMC CEO Adam Aron bailed the firm out with a $27.9 million investment earlier this month. While it was a nice gesture from AMC, the investment might have just prolonged the inevitable for Hycroft. AMC could have likely put that money to better use in its own operations, especially after acquiring seven more theater locations earlier this week. The association with AMC does not automatically make Hycroft mining a great investment.
AMC stock price
The holiday weekends are always important for global box offices, and this weekend will see a battle between two mega franchises. Sonic the Hedgehog 2 is looking to make it consecutive weeks atop the box office charts. Debuting this weekend will be the much anticipated Fantastic Beasts 3: The Secrets of Dumbledore, the latest iteration in the Harry Potter world. Early estimates are the movie will bring in $160 million worldwide by the end of the weekend. Fantastic Beasts 3 debuted last weekend at international theaters and is launching in the US this weekend.
