AMC Stock Alert: AMC Launches New Visa Payments Card

Source: rblfmr /

It has been a tough two days for AMC Entertainment (NYSE:AMC). On Tuesday, AMC stock was up almost 10% at one point. However, shares ended the session down 3.9%. Now, investors are hoping the stock can find some traction.

This hope comes after CEO Adam Aron announced via Twitter that the company will work with Visa (NYSE:V) on a new AMC payments card. The executive had the following to say:

“I keep my word to look for more revenue streams. As promised, we now announce the new AMC Entertainment VISA Card — filled with extra AMC Stubs rewards.”

The company plans to roll out this new card in early 2023 to loyalty members. Previously, AMC also announced that it would roll out its popcorn at retailers, making it clear that Aron and management are looking for “more revenue streams,” as the CEO mentioned.

As part of the new card, cardholders will be able earn points to put toward concessions. Per Deadline, “A-List and Premiere members can use the rewards for free or discounted movie tickets” as well, “including to the latest blockbusters and across all premium formats.”

So far, though, the news is not giving AMC stock the lift that investors may have hoped for. Shares closed roughly flat on the day around the $5.70 area.

What’s Next for AMC Stock?

With Tuesday’s decline as low as $5.53, AMC stock hit a one-month low. While shares are trying to bounce back, the stock desperately needs a catalyst. Not too long ago, on Dec. 1, shares traded north of $9.

However, AMC stock was rejected by its declining 200-day moving average, its first test of this longer-term moving average since August. Down about 78% year-to-date (YTD) and around 80% from its 52-week high, it’s clear that AMC is stuck in a downtrend.

AMC Entertainment last reported earnings on Nov. 8. Although the company beat on earnings and revenue expectations, shares still fell more than 7% in the next session before exploding higher by more than 50% in the next three sessions. That price gain aligned with a broader market rally; the Invesco QQQ Trust (NASDAQ:QQQ) posted a one-day gain of 7.4% on Nov. 10.

My point? AMC stock needs a healthier stock market environment in order to enjoy a sustained rally. On top of that, it would be helpful for the company to string together a couple of quarters of improving financials.

On the date of publication, Bret Kenwell did not hold (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 Publishing Guidelines.

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