Why AMC Entertainment Stock Fell as Much as 8% at the Open Today
Shares of movie theater operator AMC Entertainment (NYSE: AMC) fell sharply at the open of trading on Nov. 2, dropping as much as 8% at one point in the first 30 minutes of trading. There are likely two reasons for the negative sentiment today, though it is worth noting that, by 10:30 a.m. EST or so, the shares had managed to pare the loss to 4%.
The first big news hasn't really happened yet, since the company won't release its third-quarter earnings until after the closing bell on Wall Street today. That said, given the still difficult environment in which AMC Entertainment is operating, investors are likely expecting pretty bad news.
In a recent SEC filing the company highlighted that, despite having roughly 87% of its theaters reopened following government mandated closures, revenue was still off by 85% year over year. While AMC Entertainment has been able to open some additional theaters since that update, notably in New York and California, third-quarter earnings are likely to be brutal reading.
Source Fool.com
