AMC (AMC  ) shares were higher following the company's better than expected Q1 results. The company had its strongest quarter since the pandemic as movie-going continues to recover although it remains well below pre-pandemic levels, and there continues to be a lot of uncertainty if it will ever totally recover.

Since 2021, fundamentals haven't really mattered when it comes to AMC or other meme stocks. In January 2021, the stock opened for trading at $2.20 and eventually topped around $72. Most of this was driven by a massive short-squeeze and a social media-driven frenzy. Since then share prices are down by more than 80%, yet it could be argued that the stock remains very overvalued.

Inside the Numbers

In Q1, AMC reported a loss of $0.65 per share which was slightly better than expectations of a $0.72 per share loss. It was also an improvement from last year's $1.45 per share loss.. Revenue was higher than expected at $786 million vs $743 million and was sharply higher than last year's $148 million.

The big question is whether this improvement is sustainable or simply a one-off due to new releases in Spiderman and Batman franchises. These are the types of movies that people flock to theaters to see even if they are becoming available on streaming services much sooner than previously. The lack of new releases in theaters has been a challenge for AMC.

In a statement accompanying the results, CEO Adam Aron said: "When Hollywood releases films that moviegoers want to see, people flock to cinemas in huge numbers to watch movies where they were designed to be seen, in theatres, on the big screen."

Of course, Aron has generated controversy for his outsized presence on social media and unconventional investment in a gold miner. He also made a more conventional investment by buying a stake in National CineMedia.

Skeptics see him as more of a promoter who is taking advantage of gullible investors. The company has been pretty generous with executive compensation and issued shares to take advantage of the short-squeeze. As a result, the company has $1.3 billion in liquidity which gives it enough of a cushion to stave off bankruptcy for the near future.