- NYSE: AMC is kicking off the new week with another slide.
- Concerns about low ticket prices and reduced attendance are weighing on AMC Theaters.
- The slow reopening may precede a more significant return later on.
Back to the Future – the classic 1980s series – is one of the films aired at AMC Theaters as they reopen. The return of films has been received with little enthusiasm by investors that are worried about low prices and limited attendance.
In order to ensure safety, the Leawood, Kansas-based cinema operator has significantly reduced the number of people in its venues and also installed plexiglass separations. Moviegoers are asked to wear face masks and use sanitizing gel.
Costs from implementing the new measures and lower attendance are joined by reduced prices – as low as 15 cents in some places – meant to lure people to the big screen. Despite reports that some theaters are sold out, NYSE: AMC shares have been on the back foot.
Are markets anxious about a happy end to the coronavirus saga? That seems to be the message, yet there is also a "director's cut" that bargain seeker may opt to narrate.
AMC Theaters Stock
NYSE: AMCis struggling around the $5 mark, down from $5.19 in the previous close. The 52-week high is $12.13 and the trough was $1.95. Support is seen around the pre-surge peak of $4.75 and resistance is at Thursday's close of $5.69.
The initial disappointment from reopening cinemas with low prices and limited capacity allows for a safe and gradual return to normal – something that Adam Aron's company can weather. Once hesitant cinephiles see that going to the movies is not as hazardous as previously feared, they may make their way back.
Enhanced demand could result in higher prices – regardless of the disease – and later by relaxing some of the measures, such as allowing more people to enter closed spaces. AMC Theaters' management insists that safety is a top priority and is this message is tied to reality, shares could resume their rise.
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