AMC Shares Drop After Big Gains, Fans Keep Coming In

The stock of the movie theater giant fell more than eight percent on Wednesday, even though the company had seen a 40‑percent jump earlier in the week. Investors were likely selling shares to lock in profits after the sharp rally. The decline happened while major market indices slipped, with the Nasdaq down 0. 49 percent and the S&P 500 falling 0. 71 percent. AMC had announced that worldwide theater attendance reached a record of 25. 5 million visitors in May, the most people to see films that month in seven years. That news gave the stock a lift on Monday.Weekend ticket sales also grew, bringing in over four million moviegoers worldwide. The new film “Backrooms” earned $81 million domestically on its first weekend, becoming the sixth Hollywood release in ten weeks to surpass $75 million during opening week. Company leaders said they are confident about the rest of the year’s movie lineup, even though the share price has pulled back for now. Technical indicators show a mixed picture. The shares trade well above their 20‑day and 50‑day moving averages, but they sit below the 200‑day average. The relative strength index is high at about 74, hinting that the stock may be overbought. Overall, AMC’s price action is volatile. The short‑term trend looks positive, but the long‑term outlook remains uncertain as the company continues to draw crowds.