Why AMC Entertainment Stock Dropped 11% at the Open Today
Shares of movie theater operator AMC Entertainment (NYSE: AMC) fell a little over 11% in the first two hours of trading on Nov. 10. That drop followed a big rally the day before on positive COVID-19 vaccine news. The two are connected, but you have to do a little second-order thinking to suss out what's going on.
On Nov. 9 Pfizer and partner BioNTech announced very successful results from their COVID-19 vaccine tests. That news put investors into what can only be described as a jubilant mood. Many of the stocks that had been most affected by the pandemic rallied, including AMC's. Indeed, the company had to suffer through widespread theater shut downs early in the effort to slow the spread of the coronavirus. Even after AMC's locations started to reopen for business, it had to deal with occupancy constraints, increased cleaning costs, delayed or even canceled movie releases, and a public that has been generally reluctant to be in group settings. It's been ugly. A vaccine, however, could help to turn all of those issues around. But that was yesterday, or at least yesterday morning.
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Source Fool.com