In a poll with nearly 4,000 market participants, 93% of AMC shareholders said they will continue to hold AMC shares in 2023.
7% of market participants voted they no longer hold or will not hold the stock throughout the new year.
The high percentage of market participants who voted demonstrates retail investors aren’t ready to throw in the towel.
Mainstream media claims massive selloffs have caused shares to drop but retail isn’t selling.
Stock bashers say AMC stock is dead, but the truth is majority of investors continue to buy and hold the movie theatre stock.
Highlights from the poll show investors are mainly averaging down as AMC stock prices fall.
AMC Entertainment stock has fallen more than -82% in the past year despite strong bullish sentiment from the retail community.
Unfortunately, 60%-95% of market demand is being rerouted to off-exchange markets, suppressing true buying pressure.
SEC Chairman Gary Gensler says he understands retail’s frustrations, but that tackling short selling has its challenges.
Will Liquidity in The Market Resurrect AMC’s Share Price?
Market makers, big banks, and massive hedge funds ultimately decide where the markets are headed based on a variety of statistics such as economics, business fundamentals, and of course biased opinions.
These entities have the power to move the markets based on buy vs sell volume.
During a bear market, institutions tend to liquidate their positions due to foreseeable economic events, such as a recession for example.
In 2021, stocks were reaching all-time highs in what was a strong bull market.
Many institutions were long on the market and ‘buy orders’ dominated selling in the market.
While dark pools and off exchange trading give short sellers an advantage, big enough volume, or liquidity, during a bull market, has the power to drive stock prices up again.
Will AMC stock go up soon?
Unless we begin to see strong short positions closing, it’s unlikely we see any major run soon.
Experts are expecting a recession to hit the U.S. economy sometime during the first quarter which could trigger more selloffs from institutions throughout the year.
Is AMC Still a Short Squeeze Play?
According to Fintel, AMC’s short interest today is 21.05% with 6.46 days to cover; this means AMC shareholders still have the capability to trigger a short squeeze.
AMC’s short interest dropped from 22% to 14% when shares began to rise eventually peaking to its all-time high of $72 per share.
A drop in short interest signifies a percentage of short sellers have closed their positions.
The advantage AMC shareholders have today is that shares are significantly low and more affordable.
Shareholders looking to grow their ‘multiplier’, or number of shares prior to the next bull market may benefit greatly in the long-term.
Some stocks will eventually hit a floor and bounce back to possibly even greater levels.
Related: Will AMC Stock Squeeze in 2023?
AMC Stock Price Forecast
Analysts are giving AMC Entertainment stock $5, $10, and $20 price targets between mid 2023 through mid 2024.
However, analysts fail to acknowledge AMC’s high short interest may trigger another short squeeze, especially with such a big group of retail investors still holding the stock.
AMC’s short squeeze potential is a rock left unturned by Wall Street analysts, or at least that’s what they portray.
AMC peaked at $72 per share in June of 2021, what’s to say the stock can’t hit $100+?
The short interest today is about the same as it was prior to its massive +3,000% surge in 2021.
Companies such as AMTD Digital (HKD stock) have proven that 25,000% gains in a matter of weeks is very possible.
HKD stock soared more than $2.5K following its IPO date.
Shares began to experience exponential growth after $13.50 per share.
AMC’s share price today with a 25,000% gain could be worth roughly $985 per share.
Is AMC Stock Dead?
AMC stock isn’t dead, it’s just dormant.
With so much volume being rerouted to off-exchanges, it’s difficult for retail investors to make any real impact in the share price during today’s bear market.
AMC’s high short interest also shows us another short squeeze is certainly possible.
And with 93% of market participants saying they continue to hold AMC stock in 2023, it shows retail investors are nowhere near abandoning ship.
While it’s true that many shareholders are holding unrealized losses, many retail investors say they will continue to buy and hold until they squeeze short sellers in the next bull market, no matter how long it takes.
Also Read: How to Buy AMC Stock (2023 Guide)
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