What Happened?

Shares of television broadcasting and production company AMC Networks (NASDAQ: AMCX) jumped 1.5% in the afternoon session after the company announced it renewed “The Walking Dead: Dead City” for a third season. 

The show is a key part of the popular “The Walking Dead” universe. A change in the show's leadership was also announced, with Seth Hoffman taking over as showrunner. Dan McDermott, an executive at AMC Networks, stated that the company was delighted to have a seasoned veteran like Hoffman leading the new season. He added that the story would explore new adversaries and alliances. This development signaled continued investment in one of the network's most valuable franchises, which investors viewed favorably.

After the initial pop the shares cooled down to $7.97, up 1.1% from previous close.

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What Is The Market Telling Us

AMC Networks’s shares are extremely volatile and have had 31 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 11 days ago when the stock gained 4.8% on the news that 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.

AMC Networks is down 20.2% since the beginning of the year, and at $7.97 per share, it is trading 23.5% 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 $334.66.

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