AMC stock extends losses after reverse stock split announcement
Yahoo Finance Live takes a look at AMC shares following comments from CEO Adam Aron and the theater chain's stock outlook.
SEANA SMITH: Kick it off with AMC extending its losses from last week after the company proposed to convert preferred equity units into common shares. You're looking at losses of just about 7% today, while also we heard today, CEO Adam Aron tweeting that he recommending the board freeze his pay for the next year writing, quote, "I do not want more when our shareholders are hurting."
He also went on to say that he has asked the company's most senior officers to forego any increase to cash salaries in 2023 as well. Josh, we know Aron loves to make headlines. He's always making it known just in terms of putting his thoughts out there. He wants everyone to know exactly what AMC is doing. I think the big question, though, is whether or not some of these efforts are going to help AMC shareholders in the long run and what exactly this business plan looks like into 2023 and beyond.
JOSH SCHAFER: I think it helps interest in the AMC stock, right, and that's sort of what it seems like Adam Aron is trying to do very often in terms of what he's doing when he's tweeting out these statements. He wants people to know that he cares about the shareholders, and that's sort of why they invented this whole Ape concept and memed it by naming it Ape to begin with, right? They're trying to stir up meme interest there.
And I think that's sort of what he's doing with the tweet here, Seana, is saying, hey, guys, I'm thinking of you as shareholders. I'm really trying to think of you, so maybe help me out and maybe buy a couple more shares, Pras.
PRAS SUBRAMANIAN: I think it's funny, the "I don't want more when our shareholders are hurting." Well, they're hurting pretty bad, stock--
SEANA SMITH: Very bad, yeah, off over 80% year to date.
PRAS SUBRAMANIAN: What is it, a $45 stock? I mean, my God, I mean, this is just so brutal. And you would think that with the return to theaters, return, reopening, the company gets me going, get some box office returns, "Avatar" out. But that seems to not really goose up the stock right now, at least for now, maybe next year. We'll see, but maybe [INAUDIBLE] taking a pay cut next year. Who knows?