Shares of AMC Entertainment (NYSE:AMC) were trading 5.6% lower heading into midday trading on Wednesday as the rollout of the COVID-19 vaccine proceeds more slowly than expected.
A broadly vaccinated population can save the theater industry from collapse and allow consumers to feel comfortable going out to the movies once more. It would also mean movie studios would begin releasing more films into theaters rather than delaying their premieres.
But that's not what's happening. Fewer than 9 million vaccines have been administered in the United States, far fewer than early projections promised.
AMC Entertainment is hanging on to solvency by a thread. Although it says it needs to raise $750 million to survive through 2021, it's only been able to raise $200 million so far, and while that will buy it some time, the future is still murky, and it may not make it through to the other side.