Today is Tuesday, May 10, 2022.
New to this newsletter? Sign up here
AMC Defies Skeptics, Again
Shares of AMC Entertainment (NYSE: AMC) jumped 2.56% in after-hours trading on Monday after the movie theater operator posted positive earnings.
Financials: AMC reported a loss of 52 cents per share and revenue of $785.7 million; both were better than expected.
Movies: The movie theater chain attributed its financial results to successful films such as Spider-Man: No Way Home, The Batman, Sonic the Hedgehog 2 and Dr. Strange in the Multiverse of Madness. Upcoming films include Top Gun: Maverick, Lightyear, and Black Panther: Wakanda Forever.
Quote: “Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years. We continue on our pandemic recovery trajectory, more than quintupling revenues and improving adjusted EBITDA by nearly eighty percent compared to a year ago.” - AMC CEO Adam Aron.
Balance Sheet: AMC has strong liquidity, refinanced some of its debt, launched NFTs (non-fungible tokens), started to accept cryptocurrency as payment, and invested in a gold mining business. Some of these moves were viewed as odd business endeavors akin to a meme stock, but the results have been good for AMC’s balance sheet. It’s the second quarter in a row that AMC has performed better than expected.
Numbers: Shares of AMC are down 52% so far in 2022.
Final Thoughts: Despite the recent success, AMC is still losing money.
Notable Earnings Today: Occidental Petroleum (NYSE: OXY), Peloton Interactive (Nasdaq: PTON), SoFi Technologies (Nasdaq: SOFI), Norwegian Cruise Line Holdings (NYSE: NCLH), Roblox (NYSE: RBLX), Builders FirstSource (NYSE: BLDR), Trade Desk (Nasdaq: TTD), Coinbase Global (Nasdaq: COIN), Workhorse Group (Nasdaq: WKHS), Unity Software (NYSE: U), Bausch Health (NYSE: BHC), Array Technologies (Nasdaq: ARRY), Aurinia Pharmaceuticals (Nasdaq: AUPH), Wynn Resorts (Nasdaq: WYNN), Cronos Group (Nasdaq: CRON), Matterport (Nasdaq: MTTR), Village Farms International (Nasdaq: VFF), Rocket Cos (NYSE: RKT), Allbirds (Nasdaq: BIRD), Aramark (NYSE: ARMK), Beauty Health (Nasdaq: SKIN), Callaway Golf (NYSE: ELY), Choice Hotels International (NYSE: CHH), Electronic Arts (Nasdaq: EA), Fox Corp. (Nasdaq: FOXA), FTC Solar (Nasdaq: FTCI), GlobalFoundries (Nasdaq: GFS), Globus Medical (NYSE: GMED), Hecla Mining (NYSE: HL), Hyatt Hotels (NYSE: H), II-VI (Nasdaq: IIVI), Kinross Gold (NYSE: KGC), Li Auto (Nasdaq: LI), Liberty Global (Nasdaq: LBTYA), Nexstar Media Group (Nasdaq: NXST), Nextdoor Holdings (NYSE: KIND), Planet Fitness (NYSE: PLNT), Rackspace Technology (Nasdaq: RXT), RealReal (Nasdaq: REAL), Suncor Energy (NYSE: SU), Switch (NYSE: SWCH), Sysco (NYSE: SYY), Tidewater (NYSE: TDW), Trade Desk (Nasdaq: TTD), Vertex (Nasdaq: VERX), Warner Music Group (Nasdaq: WMG), Welltower (NYSE: WELL), Western Midstream Partners (NYSE: WES), Whole Earth Brands (Nasdaq: FREE), Workhorse Group (Nasdaq: WKHS), XL Fleet (NYSE: XL), XPEL (Nasdaq: XPEL).
Notable IPOs Today: Actelis Networks Inc (Nasdaq: ASNS), SOS Hydration Inc. (Nasdaq: SOSH).
Notable Equity Crowdfunding Campaigns Ending Today: Tubby’s Taste (Honeycomb), Ebony & Ivory Brewing (Honeycomb), Nobles Pies (Honeycomb), Pepper’s Landing (Honeycomb), Pure Rose Beauty & Art Studio (Honeycomb).
Notable Economic Events Today: EIA Short-Term Energy Outlook (12:00 p.m.), API Weekly Crude Oil Stock (4:30 p.m.).
Stablecoin TerraUSD Hits New Low
Cryptocurrency TerraUSD, a stablecoin that tracks the U.S. dollar and is usually priced around $1, dropped to 72 cents on Monday.
Background: Founded in 2019 by Terraform Labs, TerraUSD is the third-largest stablecoin. Think of a stablecoin as something in between crypto and traditional currency.
Final Thoughts: With the price of Bitcoin plummeting this week, TerraUSD has also dropped. It's a sign of fear for crypto traders.
Why Tech’s Bull Run Came to an End
After years of growth, technology stocks plummeted in the first quarter of 2020.
Reasons: Most technology stocks grew during the pandemic. But now these stocks have to deal with a post-pandemic world that includes inflation, higher interest rates, and a war in Europe.
Final Thoughts: Rising interest rates are usually bad for tech. It seems that the U.S. Federal Reserve will continue to raise its interest rates throughout the year.
Trends to Watch
Downstart: Upstart stock plunges 40% after earnings as company cuts outlook (MarketWatch)
Nothing Stable Here: New Fed Report Repeats Warning About Stablecoin Run Risks as UST Loses Peg (CoinDesk)
Not Going the Extra Mile: Uber CEO tells staff company will cut down on costs, treat hiring as a ‘privilege’ (CNBC)
Let’s Get Physical: Meta opens first physical store (ABC News)
Elon Won’t Be Happy: Tesla halts production at Shanghai plant due to supply issues (Reuters)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.