Billionaire Buys AMC Stock Near 52-Week Lows As Avatar Brings Box Office Back To Life

Core Viewpoint - AMC Entertainment Holdings Inc is experiencing a significant disconnect between strong box office performance and declining stock prices, with shares down over 50% year to date, trading around $1.75, despite a surge in attendance due to the release of "Avatar: Fire and Ash" [1][3]. Group 1: Box Office Performance - AMC reported its strongest pre-Christmas weekend since 2021, with over four million customers visiting AMC and ODEON locations globally [1]. - "Avatar" opened with $88 million domestically and $345 million globally, with premium formats like IMAX and Dolby Cinema contributing significantly to admissions revenue [4]. Group 2: Investor Sentiment - Billionaire hedge fund manager Robert Citrone has initiated a new position in AMC, purchasing approximately 32.75 million shares at an average price of $2.16, representing nearly 4% of his portfolio, indicating a potential contrarian view on the stock [3]. - The market may be overly pessimistic about AMC, as the company still operates around 860 theaters with 9,600 screens worldwide, suggesting that stabilization in box office trends could lead to a stock rebound [6]. Group 3: Financial Concerns - AMC has amended its exchangeable note agreement, allowing for up to $150 million in future at-the-market stock offerings starting in February 2026, which raises concerns about potential stock dilution [5]. - A consent fee of $6.25 million paid in AMC shares adds another layer of dilution risk for shareholders [5].