Why AMC Led Other Movie Theater Stocks Much Higher This Week
Shares of AMC Entertainment (NYSE: AMC) are headed into Friday's close up around 19% for the week despite a sizable pullback on Thursday, leading (but also outpacing) similar surges from stocks of rival theater chains Cinemark Holdings (NYSE: CNK), IMAX (NYSE: IMAX), and Regal owner Cineworld Group (OTC: CNNW.F). The gains were largely logged on Tuesday, following Monday's announcement from the FDA that it had approved its first COVID-19 vaccine based on standards above and beyond the emergency-usage approval that had allowed for the rapid development of a vaccine before now.
Investors viewed the news as a sign that the consumer environment is inching its way back to prepandemic norms. But we mustn't look past the fact that some traders leveraged the FDA's decision to spark another short squeeze for this meme stock.
It's complicated.
Source Fool.com
