- AMC Entertainment on Tuesday extended its two-day stock rally to 36% after NY Gov. Andrew Cuomo announced that NYC movie theaters are set for partial reopening on March 5.
- Movie theaters are only allowed to operate at 25% capacity, or up to 50 people, per show.
- The governor also noted that assigned seating, social distancing, and other health precautions would be in place.
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Shares of AMC Entertainment extend their two-day rally to 36% after New York Governor Andrew Cuomo announced Monday that New York City movie theaters are set for partial reopening on March 5.
Cuomo said theaters are only allowed to operate at 25% capacity, or up to 50 people, per show. The governor also noted that assigned seating, social distancing, and other health precautions would be in place.
“We are excited to announce that AMC, the largest movie theatre exhibitor in New York City, will reopen all 13 of our theatres in New York City beginning March 5,” said Adam Aron, CEO of AMC, in a statement.
Aron noted that since reopening their theaters in August 2020, they have welcomed nearly 10 million moviegoers “without a single reported case of COVID-19 transmission.”
Theaters in New York City have been shut for nearly a year in a bid to curb the spread of the virus. Movie theaters in the state, meanwhile, have been open for some time at limited capacity, as well as in other parts of the country.
The recent move to welcome back moviegoers comes amidst the governor’s effort in repoening certain parts of the state to revive the economy from opening the doors of Barclays Center to Madison Square Garden.
Not everyone, though, is pleased. An employee at Madison Square told Insider that she was shocked by the swiftness of the governor’s announcement and argued that she would need a couple more weeks for her vaccine to fully take effect.
AMC, the world’s biggest movie-theater company, has seen its stock price skyrocket and plummet in the past weeks as Reddit traders targeted the company, along with GameStop, by buying large volumes in an attempt to squeeze hedge funds shorting these.
Apart from that, investors have reallocated their portfolio into so-called reopening sectors from travel to leisure and entertainment since signs of success from various COVID-19 vaccines began to appear.