Why GameStop and AMC Could Benefit From the $1.9 Trillion Stimulus Package
GameStop (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC) are caught up in a frenzy of trading activity largely unrelated to their fundamental prospects. However, the $1.9 trillion stimulus package signed into law by President Biden could improve their near-term outlooks.
That's because the bill includes substantial funds going directly to individuals: up to $1,400 in one-time payments, a $300 weekly boost to unemployment recipients, and a $1,000 increase for the child tax credit. That money can go a long way at AMC movie theaters or GameStop stores as consumers look to spend their stimulus checks.
The increase in disposable income comes just as the risk of COVID-19 wanes nationwide. The vaccination rollout is speeding up, while the number of people testing positive for the coronavirus is trending down. That combination also has the potential to boost revenue at GameStop and AMC in 2021.
Source Fool.com
