AMC Chief Adam Aron says he has a surprise waiting for his investors but he won’t say what it is.
|AMC ENTERTAINMENT HOLDINGS INC
In an interview at the Milken Global Conference, Aron for the first time told FOX Business that the world’s biggest move theater chain will soon undergo a meaningful change to its business model. He declined to go into details but did say that the change will emphasize the new direction he’s taking the company.
AMC is one of the meme stocks responsible for galvanizing small investor interest during the pandemic, propelling shares to significant highs over the past year, even though the company has billions of dollars in debt and continues to lose money. AMC’s problems began pre-pandemic with the rise of streaming services such as Netflix and HBO, which has led to people watching movies at home instead of going to theaters. The company was further slammed during the COVID-19 pandemic when theaters were forced to close. However, Aron, the former CEO of Norwegian Cruise Lines and the Philadelphia 76ers basketball team, has earned the respect of Wall Street for his innovative approach to managing the company despite these obstacles.
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Under Aron, AMC now offers viewings of sporting events, will soon accept cryptocurrency as a form of payment for tickets and refreshments and even launched its very first national ad campaign, putting AMC back on the map. In recent weeks, movie attendance has increased across the U.S. thanks to the pandemic reopenings and the release of several blockbuster films.
As a company, AMC has also been able to capitalize on the meme stock craze as shareholders have propelled the stock to new heights, but some analysts still remain dubious. Rich Greenfield of LightShed Partners even went as far as to put a value of one cent on the stock.
Aron did not comment on the company’s stock price but says he believes the business model changes to come will benefit AMC shareholders in the long run and that good things are coming for the company.
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“People forget (Amazon founder Jeff) Bezos was once criticized for buying an online portal to buy books,” Aron said. “He innovated and look where Amazon is today. We hope to go in that same direction.”