By Ben Glickman
Shares of AMC Entertainment saw a surge in trading on Monday after a breakthrough agreement between Hollywood writers and studios to resolve a lengthy strike.
The stock witnessed an 11% increase, reaching $8.43 by midday. However, it's important to note that shares have experienced an 86% decline over the course of this year.
Late on Sunday, the Writers Guild of America and the Alliance of Motion Picture and Television Producers, the collective bargaining representative for Hollywood studios, announced that they have reached a tentative agreement, thus signaling the end of the strike that commenced on May 2.
With the finalization of this agreement, studios will finally be able to resume working on scripts for their upcoming film and TV projects.
Adam Aron, the Chief Executive of AMC, expressed his excitement on X (formerly known as Twitter), stating that "the world's movie theaters can celebrate" with this landmark agreement.
Moreover, the resumption of film production is expected to offer theater chains like AMC greater insight into the movie lineup for the upcoming year.