A day after AMC Entertainment Holdings (NYSE:AMC) stock soared 24%, investors are bidding shares up again on Friday. Shares initially jumped more than 8% today before paring some of those gains. As of 9:45 a.m. EDT, shares were up almost 3%.
Yesterday's jump came after the company announced it raised $428 million in a new share offering. But other news later in the day also has enthusiasm in the stock flowing into Friday.
First, the Centers for Disease Control and Prevention (CDC) issued a new statement on current health and safety protocols saying that fully vaccinated people can resume activities without wearing a mask or physically distancing, including indoors.
This should allow theaters to open back up at full capacity and be a desirable destination for vaccinated movie patrons. Also yesterday, Walt Disney (NYSE:DIS) announced its quarterly earnings report, and CEO Bob Chapek noted "increased production at our studios." While that is a positive for theater operators, Disney also reported disappointing subscriber growth in its streaming services.
Lower streaming subscriptions could be a positive sign for the theater business. As vaccinations continue to roll out, and with the CDC now officially giving its approval to gather indoors with crowds and without masks, theater attendance may resume quickly.
Vaccinations are going to drive people back to activities outside the home. Movie theaters are likely to be a favorite destination after more than a year of mostly watching at home. On the heels of another capital raise, AMC investors may be thinking this company finally has a promising path ahead.