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Movie Theater Stocks Rise on FDA Approval of Pfizer COVID-19 Vaccine

Movie theater stocks rally from the Pfizer COVID-19 vaccine's full approval, as it fuels hopes that vaccination rates will increase.

Shares of movie theater chains made gains Monday after the Food and Drug Administration granted full approval to Pfizer's  (PFE) - Get Pfizer Inc. Report COVID-19 vaccine.

The FDA vaccine approval covers people 16 and older.

The move could boost vaccine rates in the country and could potentially lead to higher footfalls at theater chains.

"Vaccination increasing is very important for AMC and for the movie theater industry generally," AMC CEO Adam Aron had said in a conference call, earlier in August, with analysts, according to a FactSet transcript.

"While millions of people have already safely received COVID-19 vaccines, we recognize that for some, the FDA approval of a vaccine may now instill additional confidence to get vaccinated,” said acting FDA Commissioner Janet Woodcock in a statement.

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At last check, shares of AMC Entertainment  (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report rose 7.67%, Cinemark  (CNK) - Get Cinemark Holdings, Inc. Report rose 8.29% and IMAX  (IMAX) - Get IMAX Corporation Report rose 5.96% on Monday.

S&P 500 and Nasdaq Set Records After FDA Gives Full Approval to Pfizer Vaccine

Over the last few months, AMC Entertainment was able to avoid certain bankruptcy and recapitalize its $5.4 billion in debt practically overnight as the stock consistently dominated a Reddit-retail trading frenzy.

On Aug. 10, AMC Entertainment posted a narrower-than-expected second-quarter loss and hinted at a possible partnership with fellow meme stock GameStop.

AMC CEO Aron suggested the GameStop connection in a conference call with investors that laid out a host of initiatives, including an exclusive agreement to show Warner Bros. films and plans to accept payment in bitcoin by the end of the year.