Thu Dec 25 17:30:00 UTC 2025: AMC Stock Struggles Despite Box Office Boost from “Avatar”
New York, NY – While movie theaters are seeing a resurgence in attendance thanks to the blockbuster release of “Avatar: Fire and Ash,” AMC Entertainment Holdings Inc (NYSE:AMC) continues to struggle in the stock market. Shares are down over 50% year-to-date, hovering near 52-week lows around $1.75, despite a surge in attendance with over four million customers visiting AMC and ODEON locations globally over the pre-Christmas weekend.
The disconnect between box office success and stock performance has drawn attention. Billionaire hedge fund manager Robert Citrone, founder of Discovery Capital Management, recently initiated a significant position in AMC, purchasing approximately 32.75 million shares at an average price of $2.16. This stake represents nearly 4% of his reported portfolio, signaling a considerable investment in the struggling theater chain.
“Avatar: Fire and Ash” generated $88 million domestically and $345 million globally, with premium formats like IMAX and Dolby Cinema driving a substantial portion of AMC’s admissions revenue. These premium screens are a key area for AMC to improve margins without expanding its physical footprint.
However, strong weekends are not enough to overcome persistent structural challenges. AMC recently amended its exchangeable note agreement, paving the way for potential future at-the-market stock offerings of up to $150 million starting in February 2026, potentially diluting existing shareholders’ value.
Despite these challenges, Citrone’s investment suggests that the market may be overly pessimistic about AMC’s prospects. The company still operates approximately 860 theaters with 9,600 screens worldwide. If box office revenue stabilizes and further stock dilution is limited, the stock may see a rebound.
The return of audiences spurred by “Avatar” raises the crucial question: will investors follow suit?
First Piper 