Raphael Stevens

In this articleAMCInteractive Brokers founder and Chairman Thomas Peterffy on Monday issued a warning to investors betting against so-called meme stocks like AMC Entertainment.”It is extremely tempting to short these stocks, but unless you have huge liquid resources, please try to resist the temptation because these prices can go to unimaginable highs before they settle down to a reasonable valuation, and you may have to cover on the high point,” the online brokerage pioneer said in an interview on CNBC’s “Squawk Box.”Shares of AMC soared by as much as 25% on Monday, ultimately closing 14.8% higher. The stock rose 83% last week alone despite declines on Thursday and Friday. As of Monday’s close, AMC shares are up about 2,500% in 2021.”On the long term, stocks always approach their fundamental values, which in this case is much, much lower,” Peterffy said, acknowledging that’s why short sellers see an opportunity in certain stocks such as AMC that have soared in price after becoming favored by Reddit traders.Shorting a stock is a bearish strategy in which an investor borrows shares and then promptly sells them, expecting the price to fall. When that happens, the short seller buys back the stock at its lower level and returns the borrowed number of shares, profiting off the difference. If the opposite transpires, a short may try to limit their losses by buying back the stock at higher prices.Peterffy’s comments come after a wild week of trading in AMC and a few other companies such as Bed Bath & Beyond and BlackBerry. While GameStop attracted the most attention in the epic WallStreetBets’ short squeeze in January, when the Reddit-driven trading frenzy first took hold, AMC has seen its profile — and share price — rise in recent weeks.The movie theater chain, which was hit hard by the Covid pandemic, has taken advantage of the retail investor enthusiasm by selling additional shares to raise money. AMC also has launched initiatives targeted at its retail investors, such as exclusive screenings.Despite AMC’s efforts, Peterffy said the company still has a challenging road ahead to justify its valuation and suggested long investors who want to buy and hold the stock should stay away, too.”If you’re willing to sit there and hold a stock at $200, $300, $400 a share that keeps making no money … it’s impossible that these prices can hold up at that level because more and more people will be short it,” he said.”Eventually these stocks will go back to their value which is roughly single-digit dollars, even if that,” he added. “On the long run, the longs will lose their money, So while you may try to catch a sudden drift upward as a trader, I would recommend against being long on these stocks.” More

Biogen CEO Michel Vounatsos told CNBC on Monday that the list price of $56,000 per year for the company’s FDA-approved Alzheimer’s disease drug aducanumab is “fair.”That being said, the Massachusetts-based biotech company has vowed to not increase the price of the medication, which is marketed under the name Aduhelm, for the next four years, Vounatsos said.The price of the drug is a reflection of “two decades of no innovation” and will also allow Biogen to further invest in its pipeline of medicines for other diseases, he said during an interview with CNBC’s “Power Lunch.” He added the company is working closely with federal health insurance program Medicare as well as private insurers.Shares of Biogen surged as high as 60% on Monday after the Food and Drug Administration announced it had approved the company’s drug for the disease. It is the first medication cleared by U.S. regulators to slow cognitive decline in people living with Alzheimer’s and the first new medicine for the disease in nearly two decades.Alzheimer’s disease is a progressive neurodegenerative disorder that slowly destroys memory and thinking skills. More than 6 million Americans are living with it, according to estimates by the Alzheimer’s Association. By 2050, that number is projected to rise to nearly 13 million, according to the group.The FDA’s decision was highly anticipated. The drug is also expected to generate billions of dollars in revenue for the company and offers new hope to friends and families of patients living with the disease.Biogen said Monday that aducanumab’s list price is $56,000 per year, which was higher than the $10,000 to $25,000 price some analysts were expecting. The out-of-pocket cost for patients will depend on their health coverage.When asked whether the company expected pushback from patients’ on the price, Vounatsos noted that the disease and other forms of dementia cost the U.S. over $600 billion annually and cost patients $500,000 per year.It is time to “invest” in treatment, he added. More

In this articleBIIBThe Food and Drug Administration on Monday approved Biogen’s Alzheimer’s disease drug aducanumab, making it the first medication cleared by U.S. regulators to slow cognitive decline in people living with Alzheimer’s and the first new medicine for the disease in nearly two decades.The FDA’s decision was highly anticipated. The drug, which is marketed under the name Aduhelm, is also expected to generate billions of dollars in revenue for the company and offers new hope to friends and families of patients living with the disease.Biogen’s stock was halted for the announcement. The shares later resumed trading, surging more than 60% at one point, before paring that gain and closing up 38% at $395.85.”We are well-aware of the attention surrounding this approval,” Dr. Patrizia Cavazzoni, director of the FDA’s Center for Drug Evaluation and Research, said in a press release. “We understand that Aduhelm has garnered the attention of the press, the Alzheimer’s patient community, our elected officials, and other interested stakeholders.””With a treatment for a serious, life-threatening disease in the balance, it makes sense that so many people were following the outcome of this review,” Cavazzoni added.The FDA said it will continue to monitor the drug as it reaches the U.S. market. The agency granted approval on the condition that Biogen conduct another clinical trial. The Massachusetts-based biotechnology company said Monday that aducanumab’s list price is $56,000 per year; $4,312 per infusion.Biogen CEO Michel Vounatsos told CNBC’s “Power Lunch” later Monday that he thought the drug’s price was “fair” but also vowed that the company would not hike its price for four years.It is a reflection of “two decades of no innovation” and will also allow the company to further invest in its pipeline of drugs for other diseases, he said.Alzheimer’s disease is a progressive neurodegenerative disorder that slowly destroys memory and thinking skills. More than 6 million Americans are living with it, according to estimates by the Alzheimer’s Association. By 2050, that number is projected to rise to nearly 13 million, according to the group.”It is a new day,” Harry Johns, CEO of the Alzheimer’s Association, said in a statement. “This approval allows people living with Alzheimer’s more time to live better. For families it means being able to hold on to their loved ones longer. It is about reinvigorating scientists and companies in the fight against this scourge of a disease. It is about hope.”There were previously no drugs cleared by the FDA that can slow the mental decline from Alzheimer’s, which is the sixth-leading cause of death in the United States. The agency has approved Alzheimer’s drugs aimed at helping symptoms, not actually slowing the disease itself.Federal regulators have faced intense pressure from friends and family members of Alzheimer’s patients asking to fast-track aducanumab, but the road to regulatory approval has been a controversial one since it showed promise in 2016.In March 2019, Biogen pulled development of the drug after an analysis from an independent group revealed it was unlikely to work. The company then shocked investors several months later by announcing it would seek regulatory approval for the drug after all.Shares of Biogen soared in November after it won backing from FDA staff, who said the company showed highly “persuasive” evidence aducanumab was effective and that it had “an acceptable safety profile that would support use in individuals with Alzheimer’s disease.”But two days later, a panel of outside experts that advises the U.S. agency unexpectedly declined to endorse the experimental drug, citing unconvincing data. It also criticized agency staff for what it called an overly positive review.When Biogen sought approval for the drug in late 2019, its scientists said a new analysis of a larger dataset showed aducanumab “reduced clinical decline in patients with early Alzheimer’s disease.”Alzheimer’s experts and Wall Street analysts were immediately skeptical, with some wondering whether the clinical trial data was enough to prove the drug works and whether approval could make it harder for other companies to enroll patients in their own drug trials.Some doctors have said they won’t prescribe aducanumab if it does reach the market, because of the mixed data package supporting the company’s application.Supporters, including advocacy groups and family members of those living with the disease desperate for a new treatment, have acknowledged the data isn’t perfect. However, they contend it could help some patients with Alzheimer’s, a progressive and debilitating disease.CNBC Health & Science Read CNBC’s latest global coverage of the Covid pandemic:Fauci’s 2,000 emails a day show how little U.S. officials knew in the early days of the Covid pandemic CDC director ‘deeply concerned’ over rise in teens hospitalized with Covid United offers flight attendants, pilots offered extra pay for proof of Covid vaccinationMalaysia’s Covid lockdown puts ‘a lot of pressure’ on government finances, says minister   Biogen’s drug targets a “sticky” compound in the brain known as beta-amyloid, which scientists expect plays a role in the devastating disease. The company has previously estimated about 1.5 million people with early Alzheimer’s in the U.S. could be candidates for the drug, according to Reuters.The approval is “interesting as the FDA is essentially confirming here that the beta-amyloid hypothesis has been validated,” Salim Syed, a senior biotech analyst at Mizuho Securities, said Monday, adding the decision will have major implications for future clinical trials. Some experts aren’t convinced targeting the compound will slow cognitive decline.The FDA decision is expected to reverberate throughout the biopharma sector, RBC Capital Markets analyst Brian Abrahams said in a note to clients on June 1.That forecast was seemingly backed up by comments Monday from Dr. Vas Narasimhan, CEO of Novartis.”I think it’s a reflection of the immense unmet need of these patient populations that regulators are looking for ways to bring therapeutics forward, and it certainly opens up doors,” Narasimhan said in an interview on CNBC’s “The Exchange.” “We have a big neurodegenerative research and development operation and certainly we’ll be putting pens to paper —  or, at least, banging on our computers — over the weekend ahead to really think about how we can accelerate our own programs.” The FDA said Monday it determined there was “substantial evidence” the drug helps patients. “As a result of FDA’s approval of Aduhelm, patients with Alzheimer’s disease have an important and critical new treatment to help combat this disease,” it said.– CNBC’s Kevin Stankiewicz contributed to this report. More

In this articleCMCSASimone Biles competes on the uneven bars prior to the Senior Women’s competition of the U.S. Gymnastics Championships at Dickies Arena on June 06, 2021 in Fort Worth, Texas.Jamie Squire | Getty ImagesNBCUniversal, the parent company of CNBC, announced Monday it will show more than 7,000 hours of content from the Tokyo Olympics across its networks and streaming platforms.Historically, the Summer Olympics has been a massive draw for viewers. In 2016, the two-week event attracted an average of 27.5 million viewers across all NBC platforms, and delivered 3.3 billion minutes of streaming video. The 2012 Games in London attracted roughly 31 million viewers, and the 2008 Beijing Olympics averaged 27 million viewers.This year’s spectacle, which was postponed from 2020 because of the Covid pandemic, runs from July 23 to Aug. 8, with NBC’s broadcast network anchoring prime-time events. The games will include 41 sporting events, including new competitions such as baseball, softball, skateboarding, surfing and karate.NBC will show popular competitions, including the USA men’s basketball team’s chase for a 16th gold medal, women’s basketball, women’s soccer, swimming and gymnastics featuring USA champion Simone Biles. More than 5,000 hours will stream on NBColympics.comIn addition, cable sports network NBCSN will broadcast more than 440 hours and USA Network more than 380 hours on USA Network. The Olympic Channel will show Team USA competitions, including wrestling and tennis. The Golf Channel will show golf events, and Telemundo Deportes will air competitions in Spanish language.CNBC will show more than 100 hours of competitions during its prime-time programming hours, including diving, beach volleyball, rowing, water polo and rugby. The network has aired Olympic games since 2000. People have their photographs taken next to the Olympic Rings on June 03, 2021 in Tokyo, Japan. Tokyo 2020 president Seiko Hashimoto has stated that she is 100 percent certain that the Olympics will go ahead despite widespread public opposition as Japan grapples with a fourth wave of coronavirus.Yuichi Yamazaki | Getty ImagesIn a statement, Molly Solomon, NBC Olympics production president, said coverage around the Tokyo Olympics would be “unprecedented” and will showcase “once-in-a-generation athletes and storylines that will capture the incredible uniqueness of these Games and our times.”In 2014, NBC and the International Olympic Committee agreed to a $7.75 billion media rights deal to extend their partnership. The current agreement runs through the 2032 Olympics and allows NBC to leverage the 2024 event in France and the 2028 Games in Los Angeles.There has been opposition about holding the event this year as Covid continues to impact countries. The IOC has inserted intense pandemic protocols for the games, including testing athletes at least every four days. Spectators from outside of Japan will not be allowed to attend competitions.Disclosure: Comcast-owned NBCUniversal is the parent company of CNBC. More

In this articleAMCA sign hangs outside of an AMC theater on June 01, 2021 in Skokie, Illinois.Scott Olson | Getty ImagesPeople are finally returning to cinemas. In back-to-back weekends, the domestic box office has lured moviegoers with a wide range of film titles, setting ticket sales records during the pandemic era.These box-office receipts suggest that movie theaters are heading for a recovery a year after they were forced to shutter. The news is welcome industrywide, but it may be particularly good for AMC Entertainment, which has made a number of bold moves in an attempt to lay the groundwork for its own renaissance. AMC’s ultimate success hinges on its bet that the public will continue to turn out to see films on the big screen, rather than watch the many streaming services that became popular over the past year.The world’s largest movie theater company has raised around $2 billion in cash over the last six months, predominantly from stock sales. With fresh funds, AMC’s CEO Adam Aron said, the company plans on looking at several acquisitions, including buying ArcLight and Pacific theaters that will not reopen after the pandemic. It will also consider paying down some of its $5 billion in debt, reducing its interest costs and paying millions in unpaid rent.Aron has been able to raise the cash because of continued volatility in its stock, which has become a favorite among retail investors trading so-called meme stocks. Shares of AMC were up more than 18% on Monday, adding to last week’s rally. The company’s stock has risen nearly 2,600% since January, as AMC’s surge forces short sellers to give up their bearish positions. By midday Monday, AMC was the most active stock being traded in the market.If consumers continue to head out to the movies, AMC will be able to turn more locations into larger sales. However, these same theaters could become a big burden on its cost structure if ticket sales dry up as pent-up demand to get out of the house is satiated.’Let’s run the table'”I think AMC is doing the right thing,” said Tom Nunan, a lecturer at the UCLA School of Theater, Film and Television and founder of the production company Bull’s Eye Entertainment.”The reason I say that is there’s no question in my mind that Americans want to maintain the option of going out to the movies,” he said. “So, having the moviegoing experience run by experienced movie theaters like AMC is a good thing. And I think AMC has made the wager … that in the immediate term, ‘Let’s run the table, let’s be by far the biggest theater owner and possibly an even larger theater tenant.'”Prior to the pandemic, the industry was raking in $11 billion in ticket sales in North America.With just a few weeks remaining in the second quarter, the domestic box office appears to be on track for a decline of about 75% compared with the same quarter in 2019, wrote Eric Wold, senior analyst at B. Riley Securities, in a research note published Monday.The first quarter saw a decline of around 90% compared with 2019, he wrote. Wold reiterated a projection for third-quarter sales to be down 35% and fourth quarter to fall 20% compared with 2019 levels.”More importantly, after the domestic box office was jump-started by a handful of action-oriented films, we are pleased to see similar demand levels and better-than-expected box office results from both horror films and family films,” he wrote. “We have emphasized the box office strength needed to be broad-based across all film genres to drive box office back to pre-pandemic levels and higher.”Over the weekend, the domestic box office tallied $66 million in ticket sales, the second-highest Friday through Sunday haul since the pandemic began, according to data from Comscore. The previous weekend, which saw the debut of “A Quiet Place Part II” and “Cruella,” is the current record holder, with $80.2 million in receipts.Between the two weekends, the total number of open North American theaters rose to 75%, up from 70%, Comscore reported.Next week, “In the Heights” and “Peter Rabbit 2: The Runaway” arrive in theaters. Box-office analysts and movie theater owners have high hopes that these two features will drive significant traffic to cinemas, especially as coronavirus restrictions continue to loosen.”The theater chains that go ‘all in’ by investing millions in upgrades, acquisitions and innovations are banking on the future of the big screen experience,” said Paul Dergarabedian, senior media analyst at Comscore. “And right now that appears to be a good bet.”He said these unique in-theater experiences are essential for cinemas to thrive, especially because of the growing competition raised by streaming services who are offering “great content for consumers.”Beloved theatersTheaters are at the center of AMC’s strategy. While other companies in AMC’s situation might make debt repayment their top priority for the next year, Aron is turning back to M&A, which is how the company became the nation’s largest theater chain. Aron added Carmike, Odeon and Nordic shortly after taking the role of CEO in 2015.To be sure, AMC does not plan on purchasing the companies that used to run the ArcLight and Pacific screens. It is working with landlords that were leasing some of the locations to those theaters. The only purchases AMC would make is if Decurion, which owns ArcLight and Pacific, were to sell properties that it owns outright.Nunan said this is a good start for AMC. Those chains are beloved, particularly in California, and landlords are actively seeking movie theater tenants to fill these spots.Since AMC would likely be paying for any acquisitions with cash, it wouldn’t add to its debt. That was part of the company’s strategy, Aron said during an interview Thursday with Trey Collins, host of the Trey’s Trades channel on YouTube.Representatives for AMC declined to comment further, pointing CNBC to the company’s previous securities filings and recent interviews.A change in habitsOf course, it’s unclear if audiences’ eagerness to return to movie theaters will be short-lived.”Everything comes down to content, though,” said Shawn Robbins, chief analyst at BoxOffice.com. “There may be a short-term burst driven by pent-up demand, but audiences and theaters need more than one tentpole per month. The build back to normal box office levels will take more and more consistent releases from major studios, something we’ll have a chance to see develop this summer and hopefully build momentum deep into the second half of the year.””2022 has a robust slate of films that could easily break records once this year has done the necessary legwork of recovery,” he said.The dynamic between movie studios and theaters also is in flux. Streamers who got a taste of blockbuster traffic during the Covid-19 pandemic have started making acquisitions, too. Netflix bought the rights to the next two “Knives Out” sequels, and Amazon is now the owner of MGM, which owns the James Bond franchise.”We have, basically, over the last year, trained people not to go to the movies,” said Doug Stone, a box-office consultant and former theater operator.Still, the economics of big blockbuster films only works through the box office. That’s why studios postponed so many films during the pandemic. Disney’s “Black Widow” and “Eternals,” Warner Bros.’ “The Suicide Squad” and Universal’s “F9″ are just a few of the features that were rescheduled until moviegoers could return to theaters in droves. These film franchises have generated billions of dollars at the global box office in the last decade.Nunan said he expects it is inevitable that movie studios will look to control more of the box office directly. Last year, a law that banned movie studios from owning theaters was rescinded.”AMC is making the bet that they will be the primary theater owner monopolist,” he said. “‘You’re going to have to work through us if you want to get your hands on quality theaters.'”Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More