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    UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

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    The refinery will be based at Teesport, a major port on Teesside, in the north of England.
    Lithium is crucial to the batteries that power electric vehicles.
    With demand for lithium rising, European economies are attempting to shore up their own supplies and reduce dependency on other parts of the world.

    A lithium-ion battery photographed at a Volkswagen facility in Germany. Lithium-ion batteries are crucial components in electric vehicles.
    Jan Woitas | Picture Alliance | Getty Images

    LONDON — A facility described as the U.K.’s “first large-scale lithium refinery” will be located in the north of England, with those behind the project hoping its output will hit roughly 50,000 metric tons each year once up and running.
    On Monday, a statement released by Green Lithium on the website of the London Stock Exchange said construction of the £600 million (around $687 million) project was expected to last three years, with commissioning slated for 2025.

    The refinery will be based at Teesport, a major port on Teesside. Green Lithium said its product would “go into the supply chain for lithium-ion batteries, energy storage, grid stabilisation and EV batteries.”
    Alongside its use in cell phones, computers, tablets and a host of other gadgets synonymous with modern life, lithium — which some have dubbed “white gold” — is crucial to the batteries that power electric vehicles.
    The U.K. wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions. The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets.

    Read more about electric vehicles from CNBC Pro

    With demand for lithium rising, European economies are attempting to shore up their own supplies and reduce dependency on other parts of the world.
    In a translation of her State of the Union speech last month, European Commission President Ursula von der Leyen said “lithium and rare earths will soon be more important than oil and gas.”

    As well as addressing security of supply, von der Leyen, who switched between several languages during her speech, also stressed the importance of processing.
    “Today, China controls the global processing industry,” she said. “Almost 90% … of rare earth[s] and 60% of lithium are processed in China.”
    “So we will identify strategic projects all along the supply chain, from extracting to refining, from processing to recycling,” she added. “And we will build up strategic reserves where supply is at risk.”

    Read more about energy from CNBC Pro

    Back in the U.K., Business Secretary Grant Shapps said Green Lithium’s refinery would “deliver more than 1,000 jobs during its construction and 250 long-term, high-skill jobs for local people when in operation.”
    “It is also allowing us to move quickly to secure our supply chains of critical minerals, as we know that geopolitical threats and global events beyond our control can severely impact the supply of key components that could delay the rollout of electric vehicles in the UK,” he added.
    The news about Green Lithium comes after Britishvolt, another firm looking to establish a foothold in the electric vehicle sector, said it had secured short-term funding that would enable it to stave off administration for the time being. The company said its employees had also agreed to a pay cut for November. More

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    Autos giant Renault is betting the market for gasoline cars will continue to grow

    Renault’s focus on the internal combustion engine comes at a time when some big economies are looking to move away from vehicles that use fossil fuels.
    Such targets have become a major talking point within the automotive industry.
    Speaking to CNBC, Renault CFO Thierry Pieton seeks to explain some of the reasoning behind the firm’s planned partnership with Geely.

    Renault sees the internal combustion engine continuing to play a crucial role in its business over the coming years, according to a top executive at the French automotive giant.  
    On Tuesday, it was announced that the Renault Group and Chinese firm Geely had signed a non-binding framework agreement to establish a company focused on the development, production and supply of “hybrid powertrains and highly efficient ICE [internal combustion engine] powertrains.”

    According to Renault, both itself and Geely will have a 50% stake in the business, which will consist of 17 powertrain facilities and five research and development centers.
    Speaking to CNBC’s Charlotte Reed on Tuesday, Renault Chief Financial Officer Thierry Pieton sought to explain some of the reasoning behind the planned partnership with Geely.
    “In our view, and according to all the studies that we’ve got, there is no scenario where ICE and hybrid engines represent less than 40% of the market with a horizon of 2040,” he said. “So it’s actually … a market that’s going to continue to grow.”

    Read more about electric vehicles from CNBC Pro

    The tie-up with Geely comes as Renault fleshes out plans to establish an EV spin-off called Ampere.
    According to Renault, France-based Ampere “will develop, manufacture, and sell full EV passenger cars.” It’s eyeing an initial public offering on the Euronext Paris, which would take place in the second half of 2023 at the earliest, subject to market conditions.

    During his interview with CNBC, Pieton touched upon the need, as he saw it, for different types of vehicles. “It’s very important to have, at the same time, the development of our electric vehicle business on one side — with Ampere — and to build a sustainable source of ICE and hybrid powertrains.”
    This was why Renault was going into a partnership with Geely, he added, explaining the move represented “an absolute slam dunk” from a business and financial perspective.
    This was because, Pieton argued, it created “a world-leading supplier of ICE and hybrid powertrains with around 19,000 employees in the world, covering 130 countries.”

    Read more about energy from CNBC Pro

    In comments sent to CNBC via email, David Leggett, an analyst at GlobalData, noted that automotive manufacturers could still enjoy profits from the sale of vehicles that used internal combustion engines.
    “Margins are generally higher than on electric vehicles, which are relatively costly to manufacture,” he said.
    “The gap will eventually narrow as EV volumes rise sharply and unit costs on major EV components fall significantly, but there is still much profitable business to be done on ICEs and hybrids and will be for some time to come,” he added.
    “Manufacturers need to be flexible in their powertrain offerings according to market needs — which differ across the world.”
    Renault’s continued focus on the internal combustion engine comes at a time when some big economies are looking to move away from vehicles that use fossil fuels.
    The U.K., for example, wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions.
    The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets. Over in the United States, California is banning the sale of new gasoline-powered vehicles starting in 2035.

    Such targets have become a major talking point within the automotive industry.
    During a recent interview with CNBC, the CEO of Stellantis was asked about the EU’s plans to phase out the sale of new ICE cars and vans by 2035.
    In response, Carlos Tavares said it was “clear that the decision to ban pure ICEs is a purely dogmatic decision.”
    Expanding on his point, the Stellantis chief said he would recommend that Europe’s political leaders “be more pragmatic and less dogmatic.”
    “I think there is the possibility — and the need — for a more pragmatic approach to manage the transition.” More

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    We’re fed up after Disney’s terrible quarter and streaming losses. It’s time for some big changes

    Disney (DIS) reported weaker-than-expected fiscal fourth-quarter results after the closing bell Tuesday. We are shocked and stunned by the poor performance, and we’re certainly not alone. The stock fell roughly 7% in after-hours trading. As shareholders for the Club, we think it’s time for a leadership change. Revenue for the quarter increased 9% year over year to $20.15 billion, but fell short of estimates of $21.24 billion, according to Refinitiv. Adjusted Q4 earnings declined 19% to 30 cents per share, missing estimates of 55 cents, as both of the company’s parks and media divisions struggled. Bottom line Our main issue, however, is with the losses at streaming — and sure, you could argue that losses have reached an inflection point and management completely cleared the decks and reset expectations. But this part of the business will likely lose much more in fiscal year 2023 and even fiscal 2024 than previously expected, weighing on earnings and pressuring the stock. The execution here has been so woeful, but we don’t want to leave the franchise because nothing has changed in terms of Disney’s ability to make iconic content and create great experiences. If we were to compare business to sports and ESPN, we would say that it is time to find another “coach.” Yes, that means it’s time for CEO Bob Chapek to go. Chapek was known for being such a great operator, but we cannot give him this title when the losses at Direct-to-Consumer are piling up far worse than what we were led to believe. Earnings were down almost 20% during a quarter in which revenue was up 9%. That’s not how you properly manage a business, especially in a market that stresses profitability over growth. Q4 segment results Disney Media and Entertainment Distribution: Revenue in Q4 of $12.73 billion, down 3% year over year, missed estimates of $13.8 billion. Operating income fell 91% to $83 million mostly due to higher than expected losses from the Direct-to-Consumer business. Direct-to-Consumer revenue of $4.91 billion, up 8% year over year, missed estimates of $5.4 billion, and DTC’s operating loss more than doubled from last year to $1.47 billion, and that’s worse than estimates of a roughly $1.1 billion loss. It’s a big disappointment to see losses swell to this size but the silver lining here is that management believes this quarter reflects the peak in DTC operating losses, which are now expected to narrow towards Disney+’s target to be profitable during one of quarters of fiscal 2024. This news represents no change from prior guidance. This path to profitability is expected to be driven by price increases and the launch of the Disney+ advertising tier next month, a realignment of costs with a “meaningful” rationalization of marketing spend, and an optimized content release schedule. In better news, Disney ended Q4 with 164.2 million Disney+ subscribers, up 12.1 million from the prior quarter and well above estimates of about 160.45 million. Core net subscribers made up over 9 million of the new additions, thanks to growth in existing markets and new launches, while the rest were from Disney+ Hotstar, a popular streaming service in India. Hulu subscribers in Q4 increased to 47.2 million, up from 46.2 million in the prior quarter, while ESPN+ subs were up to 24.3 million from 22.8 million in the prior quarter. It was nice to see subscribers come in ahead of estimates, but streaming’s average revenue per user, or APRU, was another disappointment. Global Disney+ ARPU+ fell 5% year over year to $4.84, badly missing estimates of about $4.27. Bundling has a negative effect on ARPUs, and Disney said Tuesday evening that bundled and multiproduct offerings now make up over 40% of domestic Disney+ subscribers. Of course, the trade-off from these lower prices is high engagement and retention, leading to smaller customer churn. Fourth quarter ARPU at ESPN+ increased 2% to $4.84, and Hulu SVOD Only slipped 4% to $12.23 while Hulu Live TV + SVOD increased 2% to $86.77. Looking ahead to the fiscal first quarter of 2023, management expects DTC operating losses to improve by at least $200 million versus the fourth quarter’s $1.47 billion loss. That’s encouraging to see but is still far away from the roughly $500 million loss analysts expected for Q1 before Tuesday evening’s release. A larger improvement is expected to happen in the fiscal second quarter, but there appears to be a major disconnect between what DTC will lose in fiscal 2023 versus what analysts had anticipated. This will put pressure on the stock and cast doubt on the path to profitability outlook. In terms of subscribers, Disney sees core Disney+ subscribers slightly increasing in its first quarter, though Disney+ Hotstar is expected to lose subs due to the absence of the Indian Premier League Cricket rights. This is another disappointment given analysts were expecting total subscribers to increase by about 6 million from the levels it ended this quarter with. Linear Networks revenue of $6.34 billion, down 5%, missed estimates of $6.6 billion but operating income of $1.73 billion, up 6%, was higher than the $1.58 billion estimate. Content sales/Licensing and Other sales of $1.74 billion, down 15% year over year, missed estimates of $2.03 billion and the operating loss of $178 million was slightly worse than the $130 million loss expected. Disney parks, experiences and products: Revenue in Q4 increased 36% to $7.43 billion, slightly missing estimates of $7.49 billion. Operating Income more than doubled year over year, but Disney’s run of crushing estimates came to an end this quarter with $1.51 billion missing estimates of $1.87 billion. Revenues at Parks & Experiences look solid, increasing 46% year over year to $6.8 billion which was higher than estimates of $5.93 billion. But operating income of $815 million missed estimates of $1.12 billion. At the domestic parks and experiences, revenue increased 44% year over year to $5.01 billion and operating income increased to $741 million. Hurricane Ian was a $65 million headwind to operating income. Per capita guest spending, which is a measure of how much an individual spends at the park, was up over 40% versus pre-Covid 2019 levels and 6% over 2021 levels, suggesting people are still spending a lot in the parks. The return of international travelers is progressing as well, with international attendance at Walt Disney World in Florida roughly back at pre-pandemic levels. Management continues to monitor booking trends for macroeconomic impacts but still sees robust demand at its domestic parks and anticipates a strong holiday season. International Parks & Experiences reported revenue of $1.07 billion and an operating profit of $74 million. Consumers Products revenue increased 4% to $1.34 billion, in line with estimates, while operating income grew 13% to $699 million, beating estimates of $647 million. Fiscal 2023 outlook Management provided some early commentary about how they see fiscal year 2023. Assuming no meaningful shift in the macroeconomic climate, the company expects revenue and segment operating income to grow at a high single-digit percentage rate versus 2022. After checking consensus estimates, this is a terrible miss compared to expectations of sales growing by 11% and operating income increasing by 17%. We can live with a few percentages point miss on revenue, but the profit guide looks very weak, and the difference must be due to those losses at DTC. The team better get a better handle on cost management, fast. (Jim Cramer’s Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

    Bob Chapek arrives at the premiere of “Pinocchio” held at the Main Theater at Walt Disney Studios on September 7, 2022 in Burbank, California.
    Michael Buckner | Variety | Getty Images

    Disney (DIS) reported weaker-than-expected fiscal fourth-quarter results after the closing bell Tuesday. We are shocked and stunned by the poor performance, and we’re certainly not alone. The stock fell roughly 7% in after-hours trading. As shareholders for the Club, we think it’s time for a leadership change. More

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    Jim Cramer says to ‘hope for the best, prepare for the worst’ ahead of October CPI report

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    CNBC’s Jim Cramer on Tuesday gave investors his expectations for the October CPI report.
    Investors will be watching for any signs that inflation is cooling down in the report, which is set to be released Thursday morning. 

    CNBC’s Jim Cramer on Tuesday gave investors his expectations for October’s consumer price index report.
    “Maybe this time will be different, and it could be. … But right now when it comes to the CPI, I think we’re in a hope for the best, prepare for the worst situation,” he said.

    The consumer price index measures prices consumers pay for a variety of goods and services. Investors will be watching for any signs that inflation is cooling down in the report, which is set to be released Thursday morning. 
    The October CPI reading could give clues on whether the Federal Reserve will adjust its pace of interest rate hikes next month. The report also has implications for the stock market, which is already jumpy this week due to Tuesday’s midterm elections.
    “We’re all worried about the consumer price index — every time this key inflation number comes in too hot, interest rates soar and stocks plummet,” Cramer said, adding that many inputs for the report including food and energy are already too high.
    But what’s most concerning to Cramer is that current CPI estimates don’t seem to factor in the multiple price increases companies have implemented. 
    “What I don’t understand is how the consensus simply can’t seem to take these higher prices into account. The numbers always seem to come in too low, like the people who put the forecasts together have never been to a supermarket,” he said.

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    Cramer’s lightning round: Palantir is a sell

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    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Cenovus Energy Inc: “I like Cenovus. … I wish it gave you a bigger yield, but it’s got great assets.”

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    Disney misses on profit and key revenue segments, warns streaming growth could taper

    Disney fell short of expectations for profit and key revenue segments during the fiscal fourth quarter Tuesday.
    The company warned strong streaming growth for its Disney+ platform may taper going forward.
    Both its parks and media divisions underperformed estimates during the period.

    Bob Chapek, Disney CEO at the Boston College Chief Executives Club, November 15, 2021.
    Charles Krupa | AP

    Disney fell short of expectations for profit and key revenue segments during the fiscal fourth quarter Tuesday and warned strong streaming growth for its Disney+ platform may taper going forward.
    Shares of the company fell roughly 8% in after-hours trading.

    The company’s quarterly results missed Wall Street expectations on the top and bottom lines, as both its parks and media divisions underperformed estimates. And Chief Financial Officer Christine McCarthy tempered investor expectations for the new fiscal year, forecasting revenue growth of less than 10%. The company reported 2022 fiscal revenue growth of 22%.

    Fourth-quarter revenue in the media and entertainment division fell 3% year over year to $12.7 billion during the year-earlier period, as the company’s direct-to-consumer and theatrical businesses struggled. Analysts had expected segment revenue of $13.9 billion, according to StreetAccount estimates.
    The company also posted lower content sales because it had fewer theatrical films on the calendar, and therefore fewer films to place into the home entertainment market.
    Here’s how the company performed in the period from July to September: 

    Earnings per share: 30 cents per share adjusted vs. 55 cents expected, according to a Refinitiv survey of analysts
    Revenue: $20.15 billion vs. $21.24 billion expected, according to Refinitiv
    Disney+ total subscriptions: 164.2 million vs. 160.45 million expected, according to StreetAccount

    Disney+ added 12.1 million subscriptions during the period, bringing the platform’s total subscriber base to 164.2 million, higher than the 160.45 million analysts had forecast, according to StreetAccount estimates.

    However, growth is expected to slow in the fiscal first quarter, Disney executives warned on Tuesday’s conference call.
    At the end of the fiscal fourth quarter, Hulu had 47.2 million subscribers and ESPN+ had 24.3 million. Combined, Hulu, ESPN+ and Disney+ have over 235 million streaming subscribers. Netflix, long the leader in the streaming space, had 223 million subscribers, according to the most recent tally.

    Disney CEO Bob Chapek said in the company’s earnings release that Disney+ will achieve profitability in fiscal 2024. The direct-to-consumer division lost $1.47 billion during the most recent quarter. It also reported a 10% drop in domestic average revenue per user (ARPU) to $6.10.
    The company is set to hike prices for the service in December and is planning an ad-supported tier, which is expected to boost revenue.
    Chapek has been on a mission to better link the company’s divisions as one single organization and accelerate its direct-to-consumer strategy.

    Stock picks and investing trends from CNBC Pro:

    The company reported record results in its parks, experiences and products segment, Chapek said. The division, which includes the company’s theme parks, resorts, cruise line and merchandise business, saw revenue increase more than 34% to $7.4 billion during the quarter.
    Still, Wall Street had slightly higher hopes for the division: Analysts were expecting revenue of $7.5 billion, according to StreetAccount.
    Operating income for the division rose more than 66% to $1.5 billion as spending increased at its domestic and international parks and consumers booked voyages on its new cruise ship, the Disney Wish. The parks unit, specifically, brought in $815 million in operating income, well shy of the $919 million expected by StreetAccount.
    Disney cited higher costs and said they were only partially offset by higher ticket revenue, driven by the introduction of the Genie+ and Lightning Lane guest offerings.
    CFO McCarthy said Tuesday that Disney is looking for “meaningful efficiencies” and actively examining the company’s cost base.
    — CNBC’s Alex Sherman contributed to this report.

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    Jim Cramer says these 10 ‘old guard’ stocks are making a comeback

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    CNBC’s Jim Cramer on Tuesday offered investors a list of 10 companies that he believes are rising to the top as tech stocks collapse.
    Cramer also warned that many investors refuse to embrace the “new reality” of the market’s distaste for tech stocks.

    CNBC’s Jim Cramer on Tuesday offered investors a list of 10 companies that he believes are rising to the top as tech stocks collapse.
    “It’s the revenge of the old guard right now, right here. All sorts of boring, conventional companies are taking back the market while the digitizers and disruptors are being burned,” he said.

    Here is his list:

    Johnson & Johnson
    Eli Lilly
    Boeing
    Honeywell
    Raytheon
    Caterpillar
    Deere & Co
    PepsiCo
    Starbucks
    Nucor 

    Cramer also warned that many investors refuse to embrace the “new reality” of the market’s distaste for tech stocks. He attributed the collapse of tech stocks largely to the plethora of competition in the industry.
    “Microsoft’s Azure goes up against Amazon Web Services, which goes up against Google Cloud. Netflix now competes with half a dozen streaming services,” he said.
    He added that the companies he mentioned are the opposite of tech firms struggling to differentiate themselves from industry peers: “Companies that don’t have much competition, or at least the competition’s so muted that it can’t disrupt the status quo.”
    Disclaimer: Cramer’s Charitable Trust owns shares of Amazon, Alphabet, Johnson & Johnson, Eli Lilly, Honeywell, Microsoft and Starbucks.

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    AMC Entertainment reports another quarterly loss despite higher revenue

    AMC’s revenue increased 27% to $968.4 million as the movie theater chain saw its admissions revenue and food and beverage spending increase.
    The company’s net loss widened slightly to $226.9 million, or 22 cents per share.
    AMC said it sold 14.9 million of its preferred shares, called “APE,” as of Tuesday.

    The AMC 25 Theatres in Times Square in New York is seen on Tuesday, July 8, 2014.
    Richard Levine | Corbis News | Getty Images

    AMC Entertainment on Tuesday reported another quarterly loss despite higher revenue from a year ago, as it spent more on operational costs.
    The world’s largest movie theater chain is contending with a massive debt load, dilution of its stock and a film release schedule short on blockbusters. While the summer box office was strong, August and September were more tepid, as studios released fewer films on the big screen.

    For the period ended Sept. 30, the company’s net loss increased slightly from a year ago to $226.9, or 22 cents per share, which was wasn’t as steep as Wall Street expected. Revenue rose and also beat expectations. AMC said its overall per-patron metrics were up when it came to admissions revenue and increased consumer spending on food and beverages at its theaters.
    Here’s what the company reported, versus what Wall Street expected, according to a Refinitiv survey of analysts:

    Loss per share:  loss of 22 cents adjusted vs. a loss of 26 cents expected
    Revenue: $968 million vs. $961.1 million expected

    The company’s stock was down nearly 4% in after-hours trading.
    AMC has been working to lighten its debt load. In October it refinanced and paid down some of its debt, extending its maturities out to 2027, after completing a $400 million private offering.
    The company came back from the brink of bankruptcy in 2021 thanks to millions of retail investors who turned its shares into a meme stock. Since then, AMC has devised several plans to raise more capital to pay down its debts and invest in acquisitions, theater upgrades, a popcorn business and even a gold mine.

    “We’re not out of the woods yet,” said CEO Adam Aron on Tuesday’s call with investors. “While the box office is unmistakably on the rise, it’s still falling short to pre-pandemic levels.”
    While AMC has a significant war chest of cash, it continues to spend more than it makes each quarter on operations including concession costs, film exhibition costs and rent. The company said it burned more than $179 million in cash during the third quarter.
    The company will continue to invest in its theaters, upgrading movie screens and increasing the number of special effects screens, such as IMAX and Dolby Cinema, across its footprint.
    CFO Sean Goodman said on Tuesday’s call that the company expects its cash burn to improve during the fourth quarter. While reducing debt and increasing its liquidity are its key initiatives, the company is open to exploring “attractive opportunities,” and has been keeping an eye on its movie theater competitors that have been struggling financially.
    Earlier this year, AMC issued a dividend to common shareholders in the form of preferred shares called “APE.” But the company was unable to fully capitalize on selling off the new shares before investors pulled their support, analysts say. 
    The company said it will sell up to 425 million of these preferred shares. As of Tuesday, it sold roughly 14.9 million shares, which raised net proceeds of about $36.4 million.
    Audiences have returned to cinemas in the wake of the coronavirus pandemic and are spending more than ever on tickets and popcorn. However, the lack of steady theatrical releases will weigh heavily on the industry during the final months of the year.
    The domestic box office tallied $1.95 billion in ticket sales between July 1 and Sept. 30, down 31% from 2019 levels, according to ComScore. The box office also saw fewer wide releases during the period compared with pre-pandemic times, with only 19 films debuting in more than 2,000 locations during their opening weekends, down 24% from 2019.
    AMC management expects the upcoming release of Walt Disney’s “Black Panther: Wakanda Forever” to be one of the biggest box office performances of the year.
    Theaters are expected to see a stronger slate of film releases in 2023, and AMC should be able to ride out the lack of releases until then because of its significant cash stockpile.
    Shares of AMC have declined nearly 80% since January and hit a 52-week low on Monday, slipping to $5.17 a piece, ahead of the company’s earnings report Tuesday. Aron attributed AMC’s falling stock price to macroeconomic headwinds, namely inflation, and the performance of competitors such as Cineworld, which recently filed for bankruptcy protection.
    Correction: An earlier version of this story misstated the name of the company’s CFO, Sean Goodman.

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