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AMC’s stock soars 50% after the drugmaker’s first data was announced Pfizer (PFE) that his coronavirus vaccine is over 90% effective, which is much better than expected. The company’s shares were up 80% in pre-market trading right after the news broke.
Cinemark (CNK), the third-largest movie theater chain in the United States, also saw a big increase, with inventory rising more than 40% after the opening bell.
Since closing their doors in March, theater chains love AMC (AMC) and Cinemark have tried to reopen with security measures to help curb the spread of the virus. Still, the industry has struggled to bring audiences back to theaters.
It cannot be underestimated how badly the coronavirus pandemic has hit the movie industry this year. The pandemic has delayed major films like “Black Widow” and “No Time to Die”, Marvel’s latest James Bond installment, until next year. While some films like Warner Bros. ‘“Tenet” hit theaters, that wasn’t enough to put audiences in the seats.
The lack of films and the lack of audiences decimated the box office and put theaters in dire straits.
For example, AMC said last month that its existing cash resources would be “largely depleted” by the end of 2020 or early 2021. The company announced last week that its revenue for the third quarter was only $ 119.5 million – a whopping 91% drop from the previous year.
Monday’s vaccine news offered hope for the besieged industry, but it’s not yet clear whether audiences would return to the movies even if a vaccine is effective.
Actions of Disney (Dis), Hollywood’s largest studio, also rose strongly on Monday morning – + 12%. The media company’s blockbusters have been delayed and its parks have been closed for months.
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