Critics may remain divided on the final season of stranger thingsbut it was a box office hit for AMC (AMC). In collaboration with Netflix (NFLX), the world’s largest movie theater chain broadcast the series finale in 231 theaters in the United States for the New Year’s Eve and New Year’s Day holiday. The move proved to be lucrative for AMC, as the company’s revenue from the two-day show amounted to a staggering $15 million. For context, for the entire quarter ending September 30, 2025, the company posted revenue of $1.3 billion.
Enthusiastic about the collaboration, with hints for more in the future, AMC CEO Adam Aron said: “I have every confidence that more compelling joint projects will emerge for Netflix and AMC in 2026 and beyond, as AMC respects its obligations to treat its many studio partners equitably.”
And this is where AMC has to make a strategic decision: Should it opt for conflict or collaboration with streaming giants like Netflix? Or should it be something specific? Meanwhile, stranger thingsAs a show, it may be an exception, since the majority of the offerings on these streaming platforms are not suitable for viewing in movie theaters.
However, the broader question for AMC shareholders is whether the stock will finally be a hit in 2026, after plummeting more than 60% over the past year. Let’s find out.
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Founded in 1920, AMC is the largest movie theater company in the United States and the world by the number of screens and theaters operated. With approximately 860 theaters and around 9,600 screens in the United States and Europe, AMC generates revenue through box office ticket sales, concession sales, premium formats and other private events such as film festivals. The company’s current market capitalization currently stands at $825.8 million.
AMC, once a top entertainment option for the masses, has fallen on hard times since streaming platforms became mainstream. Although it grabbed headlines during the pandemic era as a meme stock, driving its market capitalization to record levels of around $28 billion, reality caught up with it in the following years. Amid its unprofitable nature, the company’s revenue has grown at a humble CAGR of just 5.4% over the past decade.
More recently, the latest third-quarter results saw the company’s losses come in much larger than expected at $0.58 per share. Not only was this much higher than the consensus estimate of a loss of $0.19 per share, but it was also a multiple of the prior year’s figure of a loss of $0.06 per share. Revenue, while beating estimates, was down 3.6% from a year earlier to $1.3 billion, although overall box office takings also declined annually over the same period.
AMC also reduced its net cash outflow from operations to $14.9 million in the third quarter of 2025, from $31.5 million a year earlier. However, the company closed the quarter with a cash balance of $365.8 million, far less than its borrowings of just over $4 billion.
Additionally, confidence could not be derived from key operational metrics either, as attendance and average screen count decreased by 10.3% and 1.9% to 58,377 and 9,354, respectively.
The deal with Netflix was certainly an interesting strategic move by AMC and it paid off, but for how long? Is this strategy repeatable? Questions remain, but what it does say about AMC’s management is that they do not seek to remain inert. They are making active efforts to revive the business, despite the structural changes that the entertainment landscape has undergone in the last decade.
For example, AMC has been reviewing its theater list, eliminating those that are lagging behind and investing more in well-performing ones. They’ve implemented larger premium screens, improved sound, reclining seats, and other features that make it easier to charge higher tickets and get guests to spend more. The company also experimented with changing prices based on show times and offered special offers to Stubs members, such as certain discounts, to draw crowds and keep them loyal. Additionally, food and beverage sales per customer have reached new highs, showing that they are doing better at raising money outside of admissions.
Adding things like concerts or special screenings, along with more sophisticated options, has attracted a different type of audience and increased concession totals. Those steps helped AMC beat sales estimates in some quarters this year, with good participation in mainstream movies and premium setups. It looks like the changes are really helping the top line.
Additionally, global box office prospects for 2026 also look stronger, with several major sequels, reboots and spin-offs, from Avengers and spider man to toy story, star wars, Super Mario Bros.and other family titles.
Still, there are some serious problems floating around like a supervillain. A key concern is rising ticket prices. The average rose from $11.43 in the third quarter of 2024 to $12.25 in the third quarter of 2025, and that could drive away customers when money is tight.
Finally, even with sales picking up lately, AMC’s debt load remains enormous, limiting what it can do with cash, holding back new spending and putting pressure on profits. Longer term, the trend toward streaming and at-home viewing continues to reduce moviegoing, leaving it unclear whether crowds will ever fully return to pre-pandemic numbers.
Therefore, AMC stock has been deemed a consensus “Hold” by analysts with an average price target of $3.22, denoting approximately 100% upside potential from current levels. Of the nine analysts covering the stock, one has a “Strong Buy” rating, seven have a “Hold” rating, and one has a “Strong Sell” rating.
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On the date of publication, Pathikrit Bose had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
