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)
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
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.