AMC’s stock is up more than 2,000% this year. But theater chain’s problems aren’t solved

New York CNN Business — AMC ’s comeback, and then some — its stock price surged to a record high on Wednesday — has been fueled by Reddit’s army of retail investors as well as some legitimate good news about customers returning to movie theaters. AMC seemed to acknowledge the bizarre situation by telling investors earlier on Thursday that the “recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business” and admitted that it does not know “how long these dynamics will last.” The stock offer also came with an unusual warning: “Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” the company wrote in a filing on Thursday. The global health crisis caused cineplexes to shut down for months on end, and delayed the release of hit movies such as Marvel’s “Black Widow” and the new James Bond film, “No Time to Die.” Those movies are now set to open this year and audiences are returning to theaters, but that doesn’t mean the problems theaters face have just disappeared. Following the surge on Wall Street, Adam Aron, AMC’s CEO, seemed bullish about the future of his company, saying Tuesday that “with our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again.” Whether AMC — and the rest of the industry — stays on offense, only time will tell.