AMC Stock Up 9% in Pre-market, Company to Accept Bitcoin for Movie Tickets

UTC by Steve Muchoki · 3 min read
AMC Stock Up 9% in Pre-market, Company to Accept Bitcoin for Movie Tickets
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Additionally, AMC company noted that it will begin accepting Apple Pay and Google Pay by the end of this year.

AMC Entertainment Holdings Inc (NYSE: AMC) stock was trading as high as $36.96, 9.35% up during today’s pre-market. The spike has been directly attributed to the earnings call announced on Monday. Notably, AMC, which is the largest movie theater chain in the United States, announced that it plans to accept Bitcoin as a form of ticket payment by the end of this year.

According to AMC chief executive officer Adam Aron, the company is exploring cryptocurrency options to further open up its operations. “We are also in the preliminary stage of now exploring how else AMC can participate in this new burgeoning cryptocurrency universe and we’re quite intrigued by potentially lucrative business opportunities for AMC if we intelligently pursue further serious involvement with cryptocurrency,” Aron said.

Additionally, AMC noted that it will begin accepting Apple Pay and Google Pay by the end of this year. The move is strategic by all means as the company receives a huge global spotlight, particularly in its stock market.

AMC Stock Market Outlook

Despite being a regulated stock market, AMC stock has been heavily manipulated by speculative traders, especially from the Reddit social media platforms. Dubbed as a mem stock, AMC stock has rallied over 641%, 1,494%, and 236% in the past year, seven months and three months respectively through Monday.

However, according to market analytics provided by MarketWatch, the meme stock has dropped approximately 14% in the past month. In a past survey conducted by MarketWatch on 9 analysts, the meme stock received an average rating of Under rating. An indication the Wall Street is betting on a possible drop in the coming quarters.

On the contrary, AMC stock could surprise many and continue rallying further fueled by both fundamental aspects and the speculative aspect.

With a market capitalization of approximately $16.79 billion at the time of reporting, the company is well-positioned to take up emerging opportunities post-Covid.

During the second quarter, the company cut its net loss to $344 million, reciprocating to 72 cents per share. According to a survey by FactSet, analysts had expected the company to report a net loss of 94 cents.

The company sold a notable amount of shares and managed to raise $1.25 billion during the second quarter. At the end of the quarter, the company had approximately $2 billion in cash.

“We believe this gives AMC financial staying power to navigate boldly amidst coronavirus waters,” Aron said. “And by June 30, substantially all of our theatres were open again to entertain and delight our guests. Thanks to increased vaccination counts in the countries we serve, we started to see the rising movie-going demand, and we safely welcomed more than 22 million guests back to our theatres across the globe during the second quarter.”

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