Please ensure Javascript is enabled for purposes of website accessibility

Why AMC Entertainment Is Soaring 17% Today

By Rich Duprey - Jan 22, 2021 at 3:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's amazing what being allowed to reopen will do, even as more movie debuts are delayed.

What happened

Shares of AMC Entertainment (AMC 2.95%) were soaring 17% higher in afternoon trading Friday, despite announcements that movies such as the premiere of the latest James Bond film No Time to Die have been delayed yet again, this time until October.

So what

Although delaying films should have a negative impact since few moviegoers will come to the cinema without new titles, AMC is opening dozens of theaters this month that were previously forced to remain closed.

Theatergoers cheering

Image source: Getty Images.

Nothing has really changed in regards to the situation surrounding the COVID-19 pandemic, but a number of cities and states that were previously adamant about keeping public venues closed have suddenly had a change of heart and will now allow them to reopen.

Illinois, for example, reshut theaters in November, but just released a plan that includes allowing theater operators to reopen. AMC will reopen seven theaters today and dozens more on Jan. 29. However, masks will be required and occupancy limits of 25% of capacity will be imposed.

Now what

While not having a fresh slate of films is a problem, being closed was even worse, as AMC has been able to generate at least some income from open theaters through innovative ideas such as renting out the entire hall to groups.

Other films getting pushed back include Cinderella, which will now come out in July, as well as sequels to Peter Rabbit and Ghostbusters that have been delayed until November.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AMC Entertainment Holdings, Inc. Stock Quote
AMC Entertainment Holdings, Inc.
$12.23 (2.95%) $0.35

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.