Among the most high-profile meme stocks out there, AMC Entertainment (NYSE:AMC) remains a top favorite of retail investors. Despite having lost approximately 75% of its value from its peak, AMC stock is still one of the most traded stocks among retail investors right now.
Much of this has to do with the company’s previous impressive short squeezes. Incredible call option and share-buying activity took AMC stock to more than $72 per share in June last year. However, despite a number of spikes since then, shares have trended almost consistently downward.
From a fundamentals perspective, this certainly makes sense. After all, AMC’s core cinema business is one that has been hurting for some time. Prior to the pandemic, streaming services and a range of in-home entertainment options took eyeballs away from the big screen. Disappointing movie slates, rising ticket prices and a number of other factors have made AMC’s business a difficult one. The pandemic only exacerbated these issues, with outright closures and movie release delays furthering cash-flow concerns.
However, retail investors pointing to strong pandemic reopening catalysts still like this stock. Here are a couple key factors investors are watching closely right now.
AMC Stock Surges on Two Key Catalysts
First and foremost, tomorrow will be a key date investors will have penciled on their calendars. AMC is scheduled to report its Q4 results tomorrow, with significant investor interest likely to surround these numbers. Investors will be watching how ticket sales and concessions have performed amid what was viewed as a strong movie slate.
Additionally, there’s another key upcoming catalyst investors are watching. AMC CEO Adam Aron noted on Twitter today that BitPay will go live on March 19. BitPay will allow the company to accept top cryptocurrencies such as Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD) for payment. Accordingly, there’s a tremendous amount of interest around this catalyst for retail investors.
Right now, the market appears to be pricing in relatively strong forward-looking prospects for AMC today. However, we’ll find out if the company can live up to these expectations over the next few weeks.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
