AMC shares spiked on Monday, extending this year's stunning rally higher as the movie chain will begin reopening theaters in California.
The world’s largest movie theater operator said late Friday that it would open two theaters in Los Angeles, its biggest market, on Monday. The announcement drove AMC’s stock up as high as 29 percent to $14.27 today, before easing to trade around 24 percent.
Investors pushed the shares up ahead of the Monday afternoon reopening of two of the company's flagship locations in Los Angeles: AMC Burbank 16 and AMC Century City 15. AMC and other leisure companies last year closed locations worldwide to curb the spread of COVID-19.
AMC shares this year have surged by roughly 330% from a little more than $2 each after being part of the Reddit rally earlier this year alongside other beaten-down companies like Gamestop.
AMC said it would return to business starting with theaters in Burbank and Century City. The company plans to begin opening the rest of its theaters in the Los Angeles area, and elsewhere in California, starting on March 19.
To put the magnitude of Los Angeles reopening in perspective, as a movie market, the L.A. [Designated Market Area] is about double the size of the New York City market, which just finished last weekend as the No. 1 DMA in our circuit for box office," said Adam Aron, chief executive of AMC, in a statement on Friday