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COVID-19

Movie Theater Chains See Gains as FDA Approves Pfizer Vaccine

Strategic Insights

— 1 min read

The Food and Drug Administration's (FDA) grant of full approval to Pfizer's COVID-19 vaccine is expected to boost vaccination rates and potentially lead to increased foot traffic at movie theater chains. The approval, which covers individuals aged 16 and older, may give more people confidence to get vaccinated. AMC Entertainment, Cinemark, and IMAX saw significant gains on Monday, with shares rising 7.67%, 8.29%, and 5.96%, respectively. The FDA's move follows a surge in meme stock popularity, with AMC Entertainment previously dominating a Reddit-retail trading frenzy and hinting at potential partnerships with companies like GameStop.

Key Takeaways:

  • The FDA granted full approval to Pfizer's COVID-19 vaccine, covering individuals aged 16 and older, which may lead to increased vaccination rates and foot traffic at movie theater chains.
  • AMC Entertainment, Cinemark, and IMAX saw significant gains on Monday, with shares rising 7.67%, 8.29%, and 5.96%, respectively.
  • The FDA's approval is seen as a positive development for the movie theater industry, with AMC CEO Adam Aron stating that vaccination increasing is "very important" for the chain.
  • The approval comes as meme stocks continue to gain popularity, with AMC Entertainment previously dominating a Reddit-retail trading frenzy and hinting at potential partnerships with companies like GameStop.
  • AMC has initiated several initiatives, including an exclusive agreement to show Warner Bros. films and plans to accept payment in bitcoin by the end of the year.

Statistics:

  • Shares of AMC Entertainment rose 7.67% on Monday.
  • Shares of Cinemark rose 8.29% on Monday.
  • Shares of IMAX rose 5.96% on Monday.
  • The FDA's approval of Pfizer's vaccine covers individuals aged 16 and older.
  • Addiction to movie theaters was capitalized at 5.4 billion USD.
  • In August, AMC Entertainment posted a narrower-than-expected second-quarter loss.
  • The company plans to accept payment in bitcoin by the end of the year.

Sources:

  • [1] The Street - "S&P 500 and Nasdaq Set Records After FDA Gives Full Approval to Pfizer Vaccine" (https://www.thestreet.com/markets/stock-market-today-dow-jones-federal-reserve-bitcoin-082321)
  • [2] The Street - "AMC Rises as Meme Stock's Hold Gains; Jim Cramer Warns 'Iceman Cometh'" (https://www.thestreet.com/investing/amc-rises-meme-stocks-hold-gains-jim-cramer-warns-iceman-cometh)
  • [3] FDA - "FDA Approves First COVID-19 Vaccine" (https://www.fda.gov/news-events/press-announcements/fda-approves-first-covid-19-vaccine)

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