Why AMC Entertainment Holdings Stock Plunged at the Open on June 25
Shares of movie theater operator AMC Entertainment Holdings (NYSE: AMC) fell nearly 13% in early trading on June 25. By 10:30 a.m. EDT the stock had regained some of that loss, but it was still down a fairly significant 8% or so. The big story was, as usual these days, COVID-19. But there were some material second-order impacts that investors need to watch more closely.
The U.S. basically hit the economic pause button in early 2020 in an effort to slow the spread of COVID-19. At this point, however, states are beginning to reopen, allowing nonessential businesses to operate again and softening their stances on social distancing. It hasn't been going very well, with several early-to-open states seeing a notable uptick in COVID-19 cases. It's entirely possible that current reopening efforts will be scaled back, put on pause, or -- worse -- reversed. Investors have been selling off companies that would be impacted.
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Source Fool.com
