Why AMC Entertainment Is Falling Once Again Today

18 April 2022

in SHIBA

Reading Time: 2 mins read

What happened

Shares of AMC Entertainment ( AMC 6.87% ) are falling again in midday trading Monday with shares of the movie theater chain down 5.4% at 12:27 p.m. ET.

The downturn comes despite CEO Adam Aron following through on one of his promises to his army of so-called “apes” — the small, individual investors who have largely stuck by the theater operator through its meme stock rally and subsequent fall — to begin accepting Dogecoin ( DOGE 1.47% ), Shiba Inu ( SHIB -0.90% ), and other cryptocurrencies at the box office and concession stand.

Image source: Getty Images.

So what

Last fall Aron polled his online followers to see if they wanted the dog-inspired cryptos to be an option for payments along with Bitcoin, Ethereum, and Litecoin. After getting a big thumbs-up on the idea, Aron tweeted out on Friday that the payment options were now available, along with Apple Pay, Google Pay, and PayPal.

The market, though, seems to think it won’t matter much as the stock continues to fall and has now virtually erased all the gains it made after the company announced it was investing in a gold and silver miner and wanted to buy into more financially strapped companies.

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Now what

The market seems to want greater clarity on what the theater operator is going to do to turn around its actual business of showing movies. Although Aron has suggested a number of items to improve AMC’s financial lot, these incremental efforts at the edges don’t do much to move the needle.

[crypto-donation-box]

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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