AMC Entertainment Holdings Inc.'s stock jumped Tuesday after a report that Amazon.com Inc. is weighing an acquisition of the movie-theater chain and meme-stock darling.
AMC's (AMC) stock ended Tuesday's session up 12.8%, compared with the S&P 500 index's decline of 0.2%.
Citing multiple sources close to the discussions,
the Intersect reported that Amazon (AMZN) is exploring a possible acquisition, although there is no certainty that the retail giant will make an offer.
But Wedbush analyst Alicia Reese thinks that Amazon is unlikely to acquire AMC. " Amazon does not need 10,000 screens to enter the theater business," she said, in a note, adding that Amazon would be better off buying a piece of Cineworld Group Plc. , the U.K. -based movie-theater chain that filed for bankruptcy protection last year.
