AMC Entertainment shares are headed down this week as they did last week. Stocks of the movie theater owner are down 3.8% as of 11 a.m. ET on Monday. The stock is down despite no specific company news today and a higher Dow Jones Industrial Average.  

What’s on the billboard?

The stock of AMC spiked last week after the company announced a 31% discount on $72.5 million in debt. As soon as the reality set in that this amount was insignificant in comparison to the company’s total long-term debt of $5.5 billion, AMC’s stock began to decline.

In the two weeks since the announcement of the debt repurchase, the theater operator’s shares are down 10%.

Moviegoers have returned to AMC theaters thanks to a number of blockbuster movies like Top Gun: Maverick, which has brought in over $1.2 billion worldwide, and Thor: Love and Thunder, which has generated almost $600 million since its release earlier this month.

In spite of this, moviegoer attendance is still significantly below pre-pandemic levels. A trend like this will be hard to reverse, especially in the age of ubiquitous video streaming.

Last quarter, Netflix lost almost 1 million subscribers but says it will recover them this quarter. To protect against further losses, the streamer is investing in more quality programming, like The Gray Man, which just launched.

A movie with an all-star cast and a big budget could have easily been shown on the big screen, but Netflix is investing in its platform. AMC Entertainment may ultimately find it difficult to overcome a headwind caused by this and other streaming services.