AMC Stock Rejoicing on Amazon’s Movie Moves

Global theater chain AMC Entertainment Holdings Inc. $AMC Entertainment (AMC.US)$ celebrated e-commerce giant Amazon.com’s $Amazon (AMZN.US)$ plans to invest up to $1 billion annually in movie theatrical releases. The news pushed the AMC stock up 9.2% in intraday trading on November 23.

Amazon’s plan was welcomed with enthusiasm by all cinema stocks as theaters struggle to attract more viewers amidst the competition from online streaming channels. Yesterday, Cinemark Holdings $Cinemark (CNK.US)$ gained 12.6%, while Imax Corp. $IMAX Corp (IMAX.US)$ gained 9.2%.

Importantly, sources say that Amazon plans to release between 12 to 15 movies per year, gradually gaining strength starting in 2023.

AMC, a meme stock favorite, has been swinging wildly owing to traders’ speculative bets. Year to date, AMC stock has lost 53.1% versus gaining 19.8% in the past six months. Moreover, the stock has lost 20.3% in the past three months while gaining over 3.2% in the past five trading days.