AMC Entertainment Shares Skyrocket After Securing Capital and Zoom Video Communications Shares Fall Before Earnings Report
On Tuesday, shares of AMC Entertainment skyrocketed, closing up 22.66%.
Shares of the American movie theater chain rose after the company raised $230 million.
Mudrick Capital Management, an investment bank specializing in distressed companies, bought 8.5 million shares of AMC Entertainment for $230.5 million.
AMC said it would use the raised capital for “the pursuit of value creating acquisitions of theatre assets and leases, as well as investments to enhance the consumer appeal of its theatres.” The company also said it would use the capital to reduce its debt.
Shares of AMC Entertainment have risen over 130% in the past week.
Zoom Video Communications
On Tuesday, shares of Zoom Video Communications fell, closing down 1.15%.
Shares of the American communications technology company fell before the company released its fiscal Q1 2022 earnings report after the closing bell.
The company reported earnings of $1.32 per share on revenue of $956 million, beating analysts’ expectations of $0.99 per share on revenue of $910.2.
In a statement, CEO Eric Yuan said, “We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow. Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results.”
Shares of Zoom have fallen 20% in the past three months.
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