CALPERS Increases AMC Stake, Sells Netflix Shares

Largest pension in America (CALPERS) buys more AMC stock
Market News: Largest pension in America (CALPERS) buys more AMC stock

CALPERS, the largest pension in America increased its AMC stake this first quarter again.

Last year the institution loaded up on AMC and GameStop.

During this time, the California Public Employees’ Retirement System (CALPERS) had sold an 11% stake in Palantir (PLTR).

CALPERS purchased an additional 155,992 shares by the end of Q1 this year, totaling the number of AMC shares owned to 775,392 shares.

It sold an extreme amount of Netflix (NFLX).

Let’s discuss it.

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Largest pension in America sells 605,501 shares of Netflix (NFLX)

Largest pension fund in America buys AMC, sells Netflix
Largest pension fund in America buys AMC, sells Netflix

CALPERS sold a whopping 605,501 shares of Netflix stock (NFLX).

It ended the first quarter with a total of 1.2 million shares in the streaming platform giant.

Netflix stock is down almost 69% this year-to-date.

It dropped 38% the first quarter of 2022 alone.

Netflix received backlash in April after announcing the company plans to advertise on the platform with commercials.

Viewers argued that the company had already built too strong of a foundation to make such a change to its business model and that going that route would hurt its memberships.

Things did not get better after Netflix announced the crackdown of password sharing.

Netflix lost 200,000 customers in the first quarter of 2022.

Now America’s largest pension fund is dumping its Netflix stock and buying AMC Entertainment stock instead.

CALPERS keeps buying and holding AMC stock

Largest pension in America buys AMC
Largest pension in America buys AMC, sells Netflix

CALPERS increased their stake in AMC and GameStop throughout the 2021.

AMC and GameStop were two of the highest profile stocks in the market for 2021.

AMC saw gains upwards of +3,000% while GameStop saw gains half of AMC’s.

This year, AMC and GameStop continue to be high profile stocks as their short interest continues to be extremely high, sitting above 21% each.

AMC had a powerful Q1 earnings report this year leaving Wall Street analysts and reporters humiliated.

Last year CALPERS quadrupled their stake in AMC during the 4th quarter where they accumulated a total of 619,400 shares of the largest movie theatre chain in the world.

The pension fund now owns a total of 775,392 shares according to Barrons.

Analysts and corporate media reporters have been saying for over a year now the movie theatre industry was dead due to the rise of online streaming.

While the narrative might support a short sellers view, it’s definitely far from the truth.

People aren’t willing to let go of the movie theatre experience for the convenience of online streaming; lockdowns are over.

There is a massive demand for AMC stock

AMC stock is not done running.

The ‘ape’ community that saved the movie theatre from bankruptcy saw something no one else saw.

AMC has always had a massive short squeeze potential that has yet to be fulfilled.

Mainstream media might have spun the narrative killing the hopes and dreams of newcomers of the possibility some time ago.

But AMC’s short interest data says a third runup will be larger than what the world witnessed in May/June of last year when the stock ran up to $72 per share.

Institutions know hedge funds are overleveraged and the closing of short positions is inevitable.

Buying the stock now as the markets are at an all-time low could bear fruit very soon.

I’m curious to learn what you think.

Leave a comment at the bottom of the blog below.

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Related: This Data Shows Another AMC Massive Price Runup is Inevitable

6 Comments

  1. ASB

    AMC took good advantage of all the meme stock noobs to build a war chest that they are blowing through like water. The fundamentals have not changed and although they have restructured their debt, it only prolongs the inevitable. This is a $1 stock trading way beyond its value. In the short run, markets trade on emotion, in the long run, fundamentals. AMC will not be around in 10 years.

    • Robert

      @ ASB Two questions for you to digest . The fact that they are making money and beating estimates does that mean nothing?
      When the shorts do cover , and correct me if I am wrong. I think they only make their money when they buy back at a lower price than they sold it for . Seems to me Retail will decide when they want to sell and have a say in the price.
      Do you think retail will get out if this stock drops to $1.00 or load up, We all think and that is important what we think , that AMC is not going out of business. The scare & negative tactics have not worked yet .
      If I was short and I am NOT , I would not be sleeping well and would start thinking I better get out before one of the BIG hedges dump and drives the price a heck of a lot higher then $11.71 where it is at the time I am writing this.

  2. Karen

    Well on paper the stock should go up based on the strong earnings report but it is so manipulated by the hedgies that have so much at stake. Why’s the government not stepping in to stop the manipulation??

  3. celso amoeiro perez

    Creo que todo seguirá igual, no hay ley, sigue el juego sucio

  4. Frank Nez

    Let’s start a discussion! Leave your thoughts below.

    • Gorilla Grodd

      Agreed. People took theatres for granite. It is called fear of loss. People will want to flock to the movies now because of it.

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