AMC shares sink 15% — Here’s why the stock tanked on Wednesday
AMC (AMC) shares tanked as much as 17% during the lows of the session on Wednesday after the Centers for Disease Control and Prevention (CDC) confirmed the first case of the Omicron variant detected in California. The stock closed 15% lower, at $28.57.
Re-opening trades such as theater and travel stocks slid over concerns that variant would disrupt daily life. AMC, like other theater chains and brick-and-mortar businesses, closed operations temporarily at the onset of the COVID-19 pandemic
AMC Entertainment shares had risen 2.4% in premarket on Wednesday after the company announced it had the biggest day of ticket sales on Monday for a single title since re-opening with “Spider Man: No Way Home.”
The stock steadily inched itself down towards session lows in the afternoon amid a broader market sell-off as more headlines regarding the variant were released.
Earlier on Wednesday the South African Health Ministry indicated the number of Omicron variant cases had almost doubled since Tuesday.
AMC’s stock is down 26% since the variant was first announced last Friday, causing a market sell-off.
Shares of the theater chain company have been a retail trade favorite this year. Year to date, the stock is up more than 1300% this year.