Reddit investors got some good news yesterday afternoon. One year since shutting down its theaters, AMC Entertainment (NYSE:AMC) is ready to get customers in its seats. By Friday, March 19, that will be possible at 98% of its locations. So what does this mean for AMC stock?
AMC bills itself as the largest theater operator in the United States, Europe and the Middle East. In the middle of the pandemic, that has not exactly been a good thing. However, with a reopening plan in motion and the devout support of r/WallStreetBets, shares are looking to make a more meaningful comeback.
The catalyst comes from the latest press release. AMC says that by Friday, 98% of its U.S. theaters will be open for guests. This comes as California theaters, including 25 locations in Los Angeles County and eight locations in San Diego County, come back on the grid. AMC also says that by Monday, 99% of its theaters will be open as all but two locations in California reopen.
According to the company, this was no easy feat. It says to reopen a theater, it must receive approval from state and local authorities. AMC also details Covid-19 protocols it will follow such as reduced seating capacity, enhanced cleaning and mandatory masks. Investors should note that Monday will mark the debut of a few new locations, including a dine-in location in Montclair, California.
AMC Stock and the Reopening News
So what does this really mean for AMC stock?
It appears that this could be the first step toward normal for the company. Although they are still operating at reduced capacity, many investors see reopening its theaters as a good sign. As more consumers receive their Covid-19 vaccines and as restrictions lift, AMC could be in a good spot to leverage consumer demand. Additionally, as we saw earlier this week, there is great investor hope that AMC will benefit from stimulus checks. As American households start receiving their $1,400 payments, families could start opting for that extra-large popcorn.
Need more proof? It seems that r/WallStreetBets is excited. Perhaps AMC really should start serving bananas at its concession stands after these last few weeks.
As always, be cautious. The success story here is not a guarantee, so it is important to do your own research.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.