AMC Entertainment Holdings Inc (NYSE:AMC) is trading lower Tuesday as COVID-19 omicron variant concerns weigh on the theater sector outlook. Theaters shut down in 2020 amid the start of the pandemic and variant uncertainty has driven fears of possible lockdown measures.
A new strain of the coronavirus was detected in South Africa last week. Known as the omicron variant, the coronavirus strain has more than 30 mutations on the spike protein that binds to human cells. The mutations suggest higher transmission rates and potentially reduced antibody protection.
Health officials have now detected the omicron variant in more than a dozen countries across at least five continents.
The World Health Organization (WHO) on Monday said omicron is likely to spread internationally and poses a very high risk of infection that may potentially have “severe consequences.”
“The impact on vulnerable populations would be substantial, particularly in countries with low vaccination coverage,” according to the WHO.
Further research is required to assess omicron’s potential to resist vaccines and immunity induced by previous infections.
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AMC Entertainment Holdings is involved in the theatrical exhibition business. It owns, operates or has interests in theatres located in the United States and Europe.
Tuesday’s session volume was approaching 35 million at publication time, below the 100-day average of about 49 million, according to data from Benzinga Pro.
AMC Price Action: AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period.
The stock was down 7.34% at $34.14 at time of publication.
Photo: Dave Dugdale from Flickr.
