Why AMC Entertainment Stock Rallied 23% in the First Hour Today
Shares of movie theater operator AMC Entertainment Holdings (NYSE: AMC) have been on a tear, rising another 23% in early trading on Nov. 24. Since the start of November, the stock has roughly doubled, including today's gain. This is all about investor sentiment, since not much has changed at the company.
In 2020 the big story for AMC and its movie theater peers is obviously the coronavirus. Efforts to contain the spreading pandemic have involved shutting down movie houses and, even now that locations are reopening, occupancy is limited and cleaning costs have risen. This is terrible news for AMC, which reported an attendance decline of more than 90% in the third quarter. Worse, movie makers remain reluctant to release new flicks while moviegoers are wary of venturing out of their homes.
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Source Fool.com
