How will reopening theaters affect the stock market

Just one day after AMC (the most extensive U.S. movie chain) announced the opening of almost 75% of its domestic theaters, this company’s shares jumped 15%, also just a day before the scheduled start.

It is expected that AMC will open about 140 more theaters during the Labor Day weekend, of which several are located in California. Those will be the first to reopen in that state since the coronavirus pandemic has resulted in massive closures and fall in shares.

The first on the list is the long-expected Christopher Nolan’s movie “Tenet” by Warner Bros.

AMC is confident once again

AMC was worried since they were announcing their comeback since June. The pandemic made it hard because the risk of getting infected in smaller spaces with big crowds can be even more devastating than they are right now. However, their reopening plans included safety measures. AMC stated they consulted with scientists and doctors so that the viewers can have the safest experience possible. They hope the theaters will be lively again because they were going toward complete bankruptcy in June.

Since the beginning of the year, AMC shares have fallen 16%, and they are now lower, about 45% compared to last year. The market value of the stock equates to almost $664,000,000.

AMC stock market fluctuations

The theater reopenings imply that the film industry is going to cash in more in the coming weeks. At the time of speaking, cinema attendance tops at about 50% in most states, which will bring the rise of share prices on the stock market.

According to Comscore’s data, less than half of American theaters were open and functioning just a week ago. The number of theaters opening this weekend is not yet known, since such information becomes available not sooner than the end of the week.

The most anticipated movies next to “Tenant” are “Wonder Woman,” “Mulan,” and, of course, “Black Widow.” “Mulan” was postponed the most, sparking controversy and making people wonder if Disney decided on not releasing it.

The opening date and expectations

AMC is going big starting September 4th in California, bringing 70 percent movie theaters back to work.

Theater executives believe that the $200 million movie thriller will make people get out of their homes and experience fun moments once again, thanks to the big screen. It is yet to be seen if people will be alright sitting in a closed space next to other spectators while the virus is still spreading throughout the country.

AMC stated that their safety measures are comprehensive and include limited ticket sales. Of course, social distancing is still a must, including contactless payment, sanitizers, and cleaning procedures. The masks are also part of a mandatory policy, which should help their stocks go back to normal again.

We are yet to see how this will develop, but we hope everyone will stay safe while the economy is slowly recovering. The pandemic is still here, but with safety measures and people taking additional precautions, we believe everything will be ok for the stock market and the world going back to normal again.