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AMC box office boon doesn’t uphold meme value

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Fresh popcorn is pictured at a AMC theatre on reopening day during the outbreak of the coronavirus disease (COVID-19), in Burbank, California, U.S., March 15, 2021.

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NEW YORK, Sept 8 (Reuters Breakingviews) - AMC Entertainment (AMC.N) is breaking out the popcorn again . The theater chain hit record attendance with more than 2 million people at its U.S. locations over the Labor Day holiday weekend, largely due to Walt Disney’s (DIS.N) “Shang-Chi and the Legend of the Ten Rings.” read more That exceeds the attendance of the same weekend in 2019 and it also beats the admissions revenue set during the Labor Day weekend in 2013.

The trouble is that the company’s value has far surpassed any previous period. The company’s enterprise value is currently more than $30 billion - some 4 times more than what it was worth before Covid-19 sent the world in lockdown. Put another way, that represents more than 150 times EBITDA for the next 12 months, according to Refinitiv. Disney, which is behind the Marvel flick that drove people into seats, is worth over 20 times on the same metric.

AMC may be a darling of the meme-stock craze. To validate that price, though, it will have to redefine standing room only. (By Jennifer Saba)

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Editing by Lauren Silva Laughlin and Karen Kwok

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