AMC stock bounces after company says theaters now open will stay open

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Shares of AMC Entertainment Holdings Inc. jumped 2.2% in premarket trading Tuesday, after the movie theater operator said all of its movie theaters that are currently open will remain open business. The announcement comes after Cineworld Group PLC said on Monday that it will temporarily close its 536 Regal theaters in the U.S. and 127 Cineworld and Picturehouse theaters in the U.K. starting Oct. 8. That news sent AMC’s stock tumbling 11.2% on Monday. AMC said more than 80% of its U.S. theaters are now open and more than 90% of its Odeon Cinemas theaters across Europe are now open, while all of its theaters in the Middle East are open. AMC said there are “many new movie titles” that will be released in October and November. “Fortunately for AMC, our groundbreaking agreement with Universal Studios announced earlier this summer puts AMC in a position where we can open our theatres when others may feel the need to close,” said Chief Executive Adam Aron. The stock has tumbled 43.0% year to date through Monday, while the S&P 500 has gained 5.5%.
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