Why AMC Entertainment Stock Rocketed 25% at the Open Today
Shares of AMC Entertainment Holdings (NYSE: AMC) rose a dramatic 25% in the first few minutes of trading on Tuesday. They quickly cooled off, however, and were up 15% or so at 9:45 a.m. EST. A financing deal drove the early excitement.
The movie theater operator has been struggling amid the coronavirus pandemic. And while movie houses have been reopening following the government-mandated shutdown early in the crisis, the trouble is bigger than this one headwind. Indeed, customers haven't been willing to venture into theaters and risk catching the illness, and studios haven't been willing to release new films, reducing the attraction of going to the movies. It's a catch-22, and AMC has already warned that it could end up in bankruptcy before things turn around.
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Source Fool.com