Shares of theater operator AMC Entertainment Holdings (NYSE:AMC) dropped as much as 8% today before settling with a decline of 5% as of 3 p.m. EST.
The drop brings the cumulative losses in the stock to about 16% in just the last five days.
The rough week for shares of AMC started when some lenders started pushing the troubled company to declare bankruptcy. Today’s decline comes as the resurgence of COVID-19 cases is getting worse, and the U.K. said it has a new viral strain spreading.
The newest $900 billion pandemic relief bill reportedly agreed upon by congressional leaders over the weekend also may be adding to the negative sentiment on the stock today.
The movie theater chain is trying to stay afloat until consumers are ready, and able, to return to public theaters. Earlier this month, it secured another $100 million commitment for financing after it had said in October that without another round of financing, it would likely run out of money by the end of the year.
Though the distribution of a second vaccine began today, it’s clear that consumers still won’t be back into theaters in the very near future. Some of the aid in the latest stimulus package is to help struggling businesses. According to reports, $15 billion is specified for live venues, independent movie theaters, and cultural institutions.
That seems to imply that larger chains like AMC are not being targeted for aid. We’ll have to wait for the final approval and details of the package to be released. But even if there is more direct aid for AMC coming, it looks to be a very long time before investors who have been holding AMC Entertainment see promising returns.