AMC, Cinemark Jump as NYC Says Cinemas Can Reopen in March

Stocks of movie theater chains like AMC and Cinemark jumped Monday after Gov. Andrew Cuomo said cinemas in New York City can reopen at limited capacity next month.
Author:
Updated:
Original:

Shares of AMC Entertainment  (AMC) - Get Report rose sharply Monday after New York Governor Andrew Cuomo said movie theaters in New York City can reopen at 25% capacity starting early next month.

Shares of the Leawood, Kansas, company surged 14.9% to $6.55 at the end of trading on Monday, and were up an additional 9.5% after-hours.

New York City cinemas can open from March 5 with no more than 50 people in attendance at each screening, Cuomo said at a Monday virus briefing as quoted in Bloomberg.

Masks and assigned seating will be required, Cuomo said, and movie theaters will need to follow the state ventilation standards.

New York is reporting a 13% decline in new COVID-19 cases with a weekly average of 7,400, CNBC reported.

Other publicly-traded theater operators also advanced following Cuomo's announcement.

Shares of Cinemark  (CNK) - Get Report rose 6.3% to $23.21 during regular trading and an additional 1.6% after hours, while those of IMAX  (IMAX) - Get Report climbed 5.6% to $20.60 on Monday, but were falling 1.5% after-hours. 

Last month, AMC was caught up in a Reddit-fueled share-price rally that pushed its stock up more than fourfold in a matter of days.

Movie theaters were among the many businesses forced to close their doors at the outset of the pandemic in an effort to curb the spread of the coronavirus

As of November, AMC said it had resumed operations at 530 of its 600 U.S. theaters, with limited seating capacities of between 20% and 40%. 

AMC is still one of the volume leaders in the stock market, as retail investors continue to reiterate "they like the stock" as it was a top-five volume leader Monday.

In October, AMC had warned that it could run out of cash by year's end or early next year as it struggles through the coronavirus pandemic. But in late January, the company raised $917 million in debt and equity and its CEO said that bankruptcy is “off the table.”

Tags
hidden_terms:
CoronavirusMovies