Why AMC Entertainment Stock Jumped 27% in Early Trading on Sept. 2
Shares of movie-theatre operator AMC Entertainment (NYSE: AMC) rose a dramatic 27% at the start of trading on Sept. 2. By 10 a.m. EDT, the stock had given back a lot of that gain but was still higher by roughly 15%.
Following the advance, AMC is nearly back to breakeven for the year, which is an incredible improvement given that the shares were down around 70% at one point during the early 2020 bear market. The reason for the day's jump was an update on the company's reopening plan, which deserves closer scrutiny.
AMC's revenues plummeted when non-essential businesses, like movie theaters, were shut in an attempt to slow the spread of COVID-19. That's not shocking, given AMC's purpose is specifically to bring strangers into close proximity to each other for roughly two hours at a time so they can watch a movie.
Source Fool.com
