AMC shares rise as 70% of cinemas open this weekend

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A medical worker wearing a mask walks near the AMC theater in Times Square amid the coronavirus pandemic on May 7, 2020 in New York City.Alexi Rosenfeld | Getty Images

Shares of AMC, the largest film chain in the United States, jumped 15% on Wednesday, a day after the company announced that more than 70% of its domestic theaters would be open by Friday.AMC is expected to open about 140 additional theaters for the three-day Labor Day weekend, including several theaters in California. The latter will be the first to reopen in California since Covid-19 led to widespread closures.

This weekend is the start of Warner Bros. ‘long-awaited Christopher Nolan film “Tenet”.

AMC shares have made gains in recent weeks as plans to reopen have bolstered investor confidence in the company’s ability to withstand the financial impact of the pandemic. In June, AMC admitted that the epidemic had pushed it into bankruptcy.

Since the start of the year, AMC shares have fallen 16% and are down about 45% from a year ago. The stock has a market value of almost $ 664 million.

The reopening of theaters means that the film industry will be able to make more money in the coming weeks. Currently, movie theater attendance is capped at 50% in most states.

As of the past weekend, less than 50 percent of US-based theaters were open and operational, according to data from Comscore. It’s unclear how many theaters will be open this weekend, as that information won’t be available until later in the week.

The Rival Cinemark Theater told CNBC that more than 70% of its national circuit will reopen by September 11.

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