Why AMC Entertainment Is Falling Once Again Today

What happened

Shares of AMC Entertainment (NYSE: AMC) are falling again in midday trading Monday with shares of the movie theater chain down 5.4% at 12:27 pm 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 (CRYPTO: DOGE), Shiba Inu (CRYPTO: SHIB)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, Ethereumand 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.

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.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns and recommends Apple, Bitcoin, Ethereum, and PayPal Holdings. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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