What Happened?
Shares of television broadcasting and production company AMC Networks (NASDAQ: AMCX) jumped 4.8% in the afternoon session after the company announced it has extended and expanded its content licensing agreement with Netflix.
The new deal will bring more of AMC's popular franchises, including new seasons of “Interview with the Vampire” and “The Walking Dead” spinoffs, to Netflix's platform, and will also expand distribution internationally. This partnership has proven to be a successful strategy for AMC, as its content generated 210 million global views on Netflix in the latter half of 2024 and the first half of 2025. More importantly, the increased exposure on Netflix has directly boosted subscriber growth for AMC's own streaming service, AMC+. The company reported a nearly 600% increase in first-stream activity for “Dark Winds” and a 700% increase for “The Walking Dead: Dead City” on AMC+ after their earlier seasons debuted on Netflix, demonstrating the deal's effectiveness in converting viewers into paying subscribers.
After the initial pop the shares cooled down to $8.35, up 4.6% from previous close.
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What Is The Market Telling Us
AMC Networks’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 23 hours ago when the stock gained 4.2% on the news that the latest Consumer Price Index (CPI) report came in largely as expected, reinforcing investor hopes for an upcoming Federal Reserve interest rate cut.
Data from the Bureau of Labor Statistics showed headline inflation for August at a 2.9% annual rate, with core inflation, which excludes volatile food and energy prices, holding steady at 3.1%. While inflation remains above the Federal Reserve's target, Wall Street interpreted the figures as not being high enough to prevent a widely anticipated rate reduction at the central bank's meeting next week. Analysts note that the Fed's focus has shifted toward the risks of a cooling labor market. With this report being the last key data point before the meeting, the market's conviction for a rate cut strengthened, fueling a broad rally that pushed major U.S. stock indexes to record highs.
AMC Networks is down 16.4% since the beginning of the year, and at $8.35 per share, it is trading 19.8% below its 52-week high of $10.41 from January 2025. Investors who bought $1,000 worth of AMC Networks’s shares 5 years ago would now be looking at an investment worth $370.89.
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