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Investing.com – The AMC Entertainment (NYSE:AMC) rollercoaster ride continues, this time with actual reason. Shares rose 25% after the movie theater chain said it is preparing to resume operations at nearly all of its 56 locations in California.
The reopening, set for Friday, is subject to the approval of local authorities, the company said in a filing. AMC has more than 525 locations through the U.S.
AMC has been a favorite of the Robinhood crowd, pushed by retail traders to a three-year high in late January as they sought to stick it to the man. Shares have since fallen about 30%.
The chain is reopening in two locations in Los Angeles today with the remaining 23 outlets in the county set to start showing films from Friday. Theaters have been largely closed over the past year because of the pandemic. But with vaccinations increasing and the $1.9 trillion stimulus hitting bank accounts this week, AMC could be among the post-pandemic winners.
Last week, Macquarie raised the price target on AMC noting that consumers are eager to return to their local theaters, according to StreetInsider.
