AMC shares shoot up as Cuomo moves to reopen New York movie theaters

AMC

AMC shares shot up 18 percent and have rallied another 13 percent in aftermarket trading so far on Wednesday.

New York Governor Andrew Cuomo has announced that movie theaters can reopen at 25 percent capacity starting next week. New York City is among the most profitable markets for the nation’s largest theater chain.

AMC was among the stocks that Reddit retail traders targeted alongside GameStop. The video game retailer saw its stock – which traded as low as $2.80 in April 2020 – peak at $483, pummelling short sellers.

Popular stock trading app Robinhood caused an uproar when it temporarily froze GameStop and AMC stocks back in January. Robinhood has since been the target of criticism from the public and some members of Congress.

As for AMC, Wedbush analyst Michael Pachter maintains his neutral rating on the stock. Pachter has had AMC at neutral for nearly a year now, and his rating remains unchanged.

“We think there is significant pent-up desire to go out to the movies, and this could potentially add meaningfully to AMC’s March/Q1 and Q2 results given that AMC’s NYC theaters are some of its highest-performing theaters in its domestic circuit,” Pachter writes.

“That said, we question whether the pent-up desire will result in demand as people may remain reluctant to attend the movies until they receive their vaccine, or in the case that the transmission rate significantly falls,” he adds.

The information in this article is provided for informational and entertainment purposes only. Speak to a financial professional for stock trading tips and other financial advice.

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