AMC Entertainment stock finished the week up +8.75%.
The movie theatre chain stock had a high of $15.32 and low of $13.84 on Friday.
CEO Adam Aron announced on Thursday retail investors can expect a ‘pounce’ after second quarter 2022 earnings are announced.
Fox Businesses’ Charles Gasparino commented on the matter, but more on that down below.
Q2 earnings will be announced on Thursday, August 4th.
Let’s get right into it.
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Trading volume surpasses average volume
AMC’s trading volume surpassed 60 million on Thursday when the stock shot up to the $14 levels.
On Friday, AMC’s volume was up more than 7 million its average volume of 40.6 million.
AMC closed at $14.66 and continued to move upwards after hours.
The largest movie theatre chain in the world is now up almost 15% on the monthly chart.
Analysts have prophesized the doom of the company for over a year now, but continue to eat crow, as Adam Aron puts it.
AMC has now outperformed every analyst’s price targets.
The $14 level has been a very important and strong level of support for AMC Entertainment stock.
Last year, AMC broke multiple levels above the $14 range during its journey to its all-time high of $72 per share.
The current short interest during that time was 23% before it began to drop and push the share price up.
Although self-reported, AMC’s short interest has recently begun to decline after many months of it surging since its drop.
Will AMC stock keep rising?
Whales combined with retail investor purchasing will create enough momentum for AMC stock to rise.
Due to a high short interest in the company, there’s a very high probability short sellers get squeezed out like they did last year.
This ‘pounce’, is it what CEO Adam Aron is referring to?
Shareholders are hoping for a massive rebound, squeezing short sellers from this momentum play.
Adam Aron’s tweet is rather cryptic, but bullish without a doubt.
Some retail investors are anticipating insiders might go on a buying spree, squeezing shorts.
Others think it might have to do with a Q2 catalyst in the form of an announcement.
Perhaps it’s a coming innovation, or dividend?
Could a big company be acquiring AMC?
I’m curious to know what you think.
Be sure to leave a commend down below.
Fox Business reacts to ‘AMC pounce’ announcement
If you have not watched Charles Gasparino react to Adam Aron’s tweet you have to check out the short clip above.
Charles has been an opposing figure in the AMC-‘meme stock’ saga.
He’s unprofessionally bashed community members on Twitter and has displayed an allegiance to short sellers.
And in this clip, he looks extremely nervous about where AMC is headed.
Here’s what retail investors have to say:
In all seriousness, it looks like AMC could begin trending upwards again like it did in June of last year.
As Charles Gasparino mentioned, AMC is still a very heavily shorted company.
Any upwards momentum could realistically trigger shorts to run and close their positions before amounting very severe and consequential losses.
Adam Aron has warned short sellers in the past, now only time will tell.
Related: Is a New AMC Stock All-Time High Coming Soon?
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About The Author
The “pounce” might be a partnership w/ a deep pockets entity (i.e. movie maker) in order to expand by buying out even more competitor theatre locations. This follows my theory that AA is only interested in (long term) fundamental improvements, while avoiding anything that might cause a moass (i.e. dividend) and crash his stock price in the aftermath (I can’t really blame him). I hope I’m wrong, though for all our sakes.
Gasparino is a moron. I really can’t believe some of the stuff I see him say on Twitter.
Great info in your article Frank. TU!
The gassyguy in the clip seems like a nervous crooked turd…he insinuated that AA’s tweet may have broken insider trading rules. I have no clue but gassyguy seems the type to make that a narrative to mess w/ everyone.
Am I overthinking his intentions?
Numb nut chuckles and friend laughs at the word wen. If they were even revelant they wold see that it is in quotes. “Wen pounce” they mention spell check. I think as a journalist you know when in quotes you are quoting someone. Iay be wrong as I went to a public school and not on t.v.
Let’s start a discussion! Leave your thoughts below.