Movie theater shares increase thanks to FDA approval of Pfizer COVID-19 vaccine
Shares of movie chains rose on Monday after the Food and Drug Administration granted full approval to Pfizer (PFE) – Get the Pfizer Inc. report Vaccine against covid19.
The FDA vaccine approval covers people aged 16 and over.
This move could increase vaccination rates in the country and could potentially lead to increased attendance at movie chains.
“The increase in immunization is very important for AMC and for the movie industry in general,” AMC CEO Adam Aron said in a conference call earlier in August with analysts, according to a transcript from FactSet.
“While millions of people have already safely received COVID-19 vaccines, we recognize that for some, FDA approval of a vaccine may now inspire additional confidence to be vaccinated,” said the Acting FDA Commissioner Janet Woodcock in a statement.
At the last check, the shares of AMC Entertainment (AMC) – Get the Class A report from AMC Entertainment Holdings, Inc. increased by 7.67%, Cinemark (CNK) – Get the report from Cinemark Holdings, Inc. increased by 8.29% and IMAX (IMAX) – Get the IMAX Company Report rose 5.96% on Monday.
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Over the past few months, AMC Entertainment has been able to avoid certain bankruptcy and recapitalize its $ 5.4 billion debt virtually overnight, as the stock consistently dominated a Reddit trading frenzy.
On August 10, AMC Entertainment posted a lower-than-expected loss in the second quarter and hinted at a possible partnership with GameStop.
AMC CEO Aron suggested the GameStop connection during an investor conference call that showcased a host of initiatives, including an exclusive deal to show the Warner Bros. movies. and plans to accept bitcoin payments by the end of the year.