Jim Cramer still believes in AMC Entertainment Holdings Inc's (NYSE:AMC) stock because of AMC Entertainment CEO Adam Aron, he said Monday on CNBC's "Squawk On The Street."
Cramer told CNBC that Aron texted him Monday morning with "really encouraging" box office numbers that show the company is "finally on the rebound back to where they were in February 2020."
Domestic box office numbers grossed more than $300 million, he said. The entire month of October has been a very strong month with extraordinary box office numbers, the CNBC host said.
"I know this is a meme stock, but the fact is that I continue to believe in Adam Aron," Cramer said.
Many shorts say the stock is way overvalued and that it can't be worth what it's trading at, but if the stock price is inaccurate, Cramer asked: why doesn't the stock drop significantly when investors liquidate?
"The answer is that I think Adam Aron is pulling off a miracle."
"Squawk On The Street" co-host Carl Quintanilla noted that "Halloween Kills" brought in more than $50 million in the North American box office while it was available to stream, which shows that there was strong demand to view the movie in theaters.
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AMC Price Action: AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period.
The stock was up 5.33% at $42.89 midday Monday.
Photo: Dave Dugdale from Flickr.