The AMC share price is trading5.67 % lower at $29.96. Its total market capitalization stands at $15.41 billion. It has ended its previous trading session 6.07% lower.
Just like its biggest competitors Cineworld and Regal Cinemas, the coronavirus pandemic heavily weighed on the AMC share price. The government’s strict restrictions on public gatherings led to the shutting down of movie theatres in a bid to curb the spread of the virus.
However, the easing of the lockdown restrictions in mid-2021 saw the sector recover, albeit at a slower pace. Earlier on Monday, AMC posted its earnings for the second quarter. Its earnings beat Wall Street projections as revenue continued to increase with the reopening of movie theatres.
The company’s net loss narrowed to $344 million, or 71 cents per share, down from a loss of $561.2 million a year ago. It beat analysts’ projections of a net loss of 91 cents per share. The movie theatre chain reported revenue of $444.7 million which was higher than the projected $382.1 million.
According to AMC’s CEO, Adam Aron, the company raised $1.25 billion of new equity capital in the quarter. This boosted the company’s quarter-ending liquidity to more than $2 billion. Aron stated that the company is still not “out of the woods” yet. There are so many uncertainties about the company’s recovery due to the pandemic.
During the earnings call, Adam Aron announced that AMC Theatres would start accepting Bitcoin to pay for movie tickets. The Cinema operator will have the technology in place to receive payment in Bitcoin by the end of the year.
AMC Share Price Outlook
The AMC share price is trading more than 58% below its highest point this year in June. It has been consolidating below the $40 level since the end of July.
On the 4-hour chart, it is trading below the 50 and 100-day EMAs, reinforcing its bearish outlook. Its Relative Strength Index (RSI) is weak at 37.42, which is near oversold.
With the current rise in infections, there is a probability that the stock’s price will maintain its negative sentiment. It could drop to May’s lowest level at $24.30. Bulls need to gather momentum to push the prices past the $40 level.