AMC Entertainment has become a power to be reckoned with. AMC stock is up nearly 3000% year-to-date and it hasn’t even squeezed yet. Volume, momentum, and company fundamentals such as earnings are allowing the stock to skyrocket.
So what does this mean for the average retail investor questioning whether if it’s too late or not to buy AMC stock? Well if you’re in it for a short squeeze its not too late.
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What is causing AMC to skyrocket?
AMC’s current market cap is approximately 32.34 billion. A large market cap is typically above 10 billion. We’ve seen AMC stock’s market cap soar since February of earlier this year.
Retail investors discovered that AMC Entertainment was the most shorted stock in the market. This prompted a movement to squeeze the short sellers out of their positions. Along the way, the community managed to save the entire movie industry and our favorite movie theater franchise.
AMC Entertainment has raised billions of dollars in cash due to the help of retail investors who bulked up on the stock earlier this year. We’ve also seen huge institutions such as Vanguard, Blackrock, Wells Fargo, and Charles Schwab purchase millions of shares.
Now, a new wave of retail investors are joining the AMC and ape community for a once in a lifetime opportunity. This pump in volume is increasing AMC stock’s share price.
AMC stock hits new record highs
AMC stock continues to hit new record highs as the companies fundamentals also break pandemic records. New movie titles are bringing people back to the movie theaters with AMC Entertainment earning millions in revenue from premier dates alone.
Earnings don’t include their food and beverage sector which has also broken pandemic records. These company fundamentals play a massive role in the rise of AMC’s current price action.
Will AMC stock keep going up?
As more retail investors continue to buy and hold AMC stock, the share price will continue to rise. As this pattern progresses, the stock will begin to experience several gamma squeezes inevitably leading to a short squeeze.
How soon will we see an AMC short squeeze?
I personally think a short squeeze is likely to be triggered when we hit the $100 range. Any rise before $100 will be a series of gamma squeezes.
This doesn’t necessarily mean that once we hit $100 that share price will be the beginning of a short squeeze. Granted, it may even happen sooner. If the price trades at $100 per share then short sellers could potentially run out of oxygen given that they’re under water at the moment.
This type of pressure could very well lead to the first batch of short sellers to close their position in AMC Entertainment. And I say first batch because not every short seller is going to be covering at the same time. This is usually why short squeezes could last several days to even several weeks.
What if short sellers don’t cover at $100 per share?
If short sellers don’t cover at $100 per share then AMC stock will still continue to fundamentally rise. Shorts sellers will only be affected worse. Especially if they’re margin called at such a high price.
Retail investors can hold AMC stock as long as it takes for hedge funds to willingly close out their positions or for them to get margin called. And as long as the AMC community continues to buy and hold the stock, the price action will continue to rise even without a short squeeze being initiated.
Should you buy AMC stock?
Retail investors who bought AMC stock back in February are up thousands to tens of thousands and even hundreds of thousands of dollars right now. The community continues to hold the stock due to the data that points towards this mother of all short squeezes (MOASS).
AMC’s share price is still pre-mature. The stock is running up but shorts haven’t covered yet. This means the room for growth is substantial.
AMC stock tested the $70 zone a while back. There’s no doubt in my mind we will reach $100 in due time and a short squeeze thereafter.
What are the risks of this trade?
Like any investment, there is always a risk of you losing money. This is why you should always invest what you can afford to lose.
We must also remember that bulls make money, bears make money, but pigs get slaughtered. In other words, do your research and trust your conviction towards this move. Don’t get caught bag holding because you though the stock could go up to $500k per share.
I personally feel the real risk here is not taking the risk. I am not a financial advisor but I can confidently tell my friends and family to get in on this trade now. My entire immediate family opened a position in AMC a few months ago and they’re now up substantial money.
Heck, my little brother is up $20K and continues to hold the stock! Do what you feel is right and get involved with the community if you feel this is the move for you.
Does Frank Nez hold AMC stock?
I’ve never been too public about my position in AMC simply because I always felt like it was a no brainer. When I first started my Discord group, I did publish screen shots of a few purchases I had made then. I currently hold approximately 1,400 shares in AMC Entertainment.
I got in at $14 per share and bought more when it had dropped to $5 per share and have been buying the dips on the way up. And yes, I’m still adding to my position.
Are you excited for an AMC short squeeze?
Let me know in the comments section below what an AMC short squeeze would mean for you! Are you reinvesting it? Paying off your debt? I’d love to hear your story.
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