Category: AMC Stock (Page 1 of 17)

Citi, Goldman, Extend AMC’s Covenant Waiver to 2024: What it Means

January 26, 2023 / / 5 Comments
AMC Covenant Waiver
Market News Today: Banks extend AMC’s covenant waiver to 2024.

CEO Adam Aron said Citi, Goldman Sachs, and Credit Suisse have extended AMC’s covenant waiver to March 31st of 2024.

“This is a reflection of AMC’s recovery being well under way… a vote of confidence in AMC by our banks that we much welcome. Thank you Citi, Goldman, and Credit Suisse”, said AMC Entertainment (NYSE:AMC) CEO Adam Aron on Wednesday.

So, what exactly is a covenant waiver extension and what does this mean for AMC Entertainment?

What is a Covenant Waiver?

A covenant waiver is when a lender temporarily forgives a borrower’s breach of a loan covenant.

In AMC’s case, the lenders are Citi, Goldman Sachs, and Credit Suisse.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Financial Covenants Explained

Covenant requirements are conditions the borrower must regularly meet throughout the term to demonstrate their creditworthiness to the lender.

Lenders frequently use certain financial tests that serve as indicators of the borrower’s repayment ability.

Failure to meet these tests violates the covenant and constitutes loan default.

In AMC Entertainment’s case, lenders have waived, or forgiven AMC’s breach of contract, per their loan covenant and extended it to March 31st 2024.

What Does This Mean for AMC Entertainment?

AMC News Today.
AMC News today.

For AMC Entertainment, a covenant waiver will allow the business to run operations under its debt contracts with Citi, Goldman Sachs, and Credit Suisse until 2024.

If the company fails to meet its debt obligations, or financial covenant requirements, then the loans are subject to default.

This puts AMC Entertainment in a tricky position in terms of what they can and cannot do or say.

Which also explains why the CEO cannot raise awareness of the manipulative shorting of the company stock.

It’s very likely that speaking out on such topics may violate these covenant agreements.

Some retail investors have scrutinized Adam Aron for not speaking out on naked shorts like other CEO’s are doing today.

But this news may provide shareholders with more perspective on why that is.

Is AMC Entertainment Being Held Hostage by Lenders?

Citigroup currently holds call options representing 0 of underlying shares valued at $0 USD and put options representing 55,000 of underlying shares valued at $383,000 USD.

Source: Fintel.

The bank has been selling shares while playing put options in order to profit from the drops they’re triggering in the market.

As of November 7th, 2022, Citigroup has dropped AMC’s price target from $3.13 per share to $1.20 per share and used the media to promote the price target.

Just a month prior to Citi’s price hit, Credit Suisse said in October AMC shares are worth less than $1.

The banks are making their money which means it’s going to be up to the company and shareholders to prove the Wall Street short thesis wrong.

But I’m interested in hearing your thoughts.

Leave a comment down below.

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AMC Stock is Up +40% This Year: What it Means for Shorts

January 24, 2023 / / 1 Comment
Daily Market News: AMC stock news, updates + more.
Daily Market News: AMC stock news, updates + more.

AMC Entertainment (NYSE:AMC) stock is up more than +40% this year-to-date.

New developments this year may send share prices rising throughout 2023.

Streaming giants have figured out that the theatrical experience is key to their long-term success.

AMC Entertainment CEO Adam Aron praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

On the other end, CNBC says Netflix left $200 million on the table for not leaving Daniel Craig’s ‘Glass Onion: A Knives Out Mystery’ in theatres longer.

So, what does this say about the Wall Street short thesis that movie theatres are dead?

Here’s the latest AMC Entertainment stock market news.

Online Streaming Might Not Be What Wall Street Hoped For

AMC online streaming news - Netflix falls short.
AMC online streaming news – Netflix falls short.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NASDAQ:NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

What Are Experts Saying?

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue. “

Related: AMC’s Cost to Borrow Has Hedge Funds Burning $20 Million Per Month

What Does This Mean for Short Sellers?

Daily Market News by FrankNez - Will AMC go up again?
Daily Market News by FrankNez – Will AMC go up again?

For short sellers betting against the movie theatre company, it could mean severe losses if share prices were to skyrocket again.

AMC Entertainment stock is still heavily shorted, currently weighing in at 21.92% short interest (updated daily).

All it takes is for a few short sellers to begin closing their positions for other short sellers to follow suit.

This chain reaction could trigger an AMC short squeeze in 2023.

Amazon insiders told Bloomberg the retail giant plans to invest billions in the movie theatre industry, aiming to release 12-15 movies annually for theatrical release.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

CNBC stated that ‘while a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business.”

Related: Will AMC Stock Keep Rising this Week? (Updates)

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What is Going on with AMC’s Preferred Equity (APE)?

January 24, 2023 / / 2 Comments
what is happening with APE stock?
Market News Today: What is happening with APE stock?

AMC’s Preferred Equity (NYSE:APE) is up +50% this year-to-date after coming down more than -70% in the past year.

Talks have surfaced about a possible conversion of APE shares back to AMC Entertainment (NYSE:AMC) common stock.

APE served as a liquidity tool to supply the movie theatre chain with the capital necessary to pay down its debt and raise cash for the business.

In October 2022, AMC reduced its debt load by $106 million and has extended its maturities until the year 2027.

The company capitalized on APE to cut some debt off the top before taking on new debt due in five years from now.

AMC has replaced $506 million due in 2023 with $400 million of new debt due in 2027.

The updated balance sheet is going to ensure the movie theatre chain company is able to grow while it slowly pays off its debt.

AMC Entertainment has reported positive earnings reports since 2021 when shareholders rescued the company from bankruptcy.

Today, it’s about maintaining that momentum to ensure the short thesis eventually changes.

Will APE Shares Go Up?

APE Stock Price Today - Yahoo Finance.
APE Stock Price Today – Yahoo Finance.

AMC’s Preferred Equity (APE) is up 50% this year-to-date.

The equity saw massive buying volume in the beginning of the new year which led to a great head start this year.

This type of buying pressure will continue to drive APE shares up in the future, that is unless majority of shareholders decide not to convert the equity into common shares of AMC stock.

Today, APE is trading around $1.80 and is up +2% in the past five trading days.

The equity had been named one of the most heavily shorted stock by Yahoo Finance in December of 2022, but the short interest has dropped to 5.40% (updated daily).

While there are still short sellers betting against the equity, AMC Entertainment has warned both retail investors of possible and significant losses due to volatility and the possibility of a short squeeze.

Are you holding shares of AMC’s Preferred Equity (APE)?

Leave your thoughts in the comment section of the blog below.

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Will AMC Stock Keep Rising this Week? (Updates)

January 23, 2023 / / 2 Comments
Will AMC stock go up this week? Market news + updates.
Will AMC stock go up this week? Market news + updates.

AMC Entertainment (NYSE:AMC) stock is currently trading around $5.64 per share.

The movie theatre stock had fallen below $4 just weeks ago but has risen above main support levels again.

AMC stock is up approximately 2% on Monday morning despite low trading volume.

We’re also seeing short interest in AMC Entertainment stock dropped from 22.10% to 21.96%.

Could this explain why we’re seeing small gains early this week with very low volume?

And will AMC stock continue to go up this week?

Let’s dive into some quick technical analysis that will allow us to identify where the stock may go short-term.

AMC Technical Analysis Today

Technical Analysis – $AMC stock.

AMC Entertainment stock is currently consolidating around $5.64 per share.

A break above this level may send AMC to retest $5.82 per share during any day this week.

Beyond the $5.80 level is $6.16.

However, if AMC fails to break above the consolidating level of $5.64, we can expect to see AMC stock drop and retest its major support level of $5.55.

Short sellers closing small positions or heavy buying volume from retail investors will carry the momentum towards the upside.

The weekly MACD shows us buyers are in control and indicators show no signs of slowing buyers or big sellers stepping in.

Rejection at $5.80 could mean more consolidation for AMC.

But as we’ve seen in the market time and time again, any whale may step in to either buy or sell the stock, contradicting what chart patterns are signaling.

Bookmark this page if you’d like to see weekly updates like this.

Recent News

AMC’s cost to borrow continues to rise.

In the past, we’ve seen how important this data has been regarding major price runup.

Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.

The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.

AMC has approximately 179.25 million shares on loan as of the publication of this article.

Hedge funds are paying 135% annually on these loans.

This translates to $241.9 million per year, or $20.16 million per month.

Related: Breaking AMC Stock News

Follow AMC’s short interest here

AMC short interest
AMC Short Interest Today: Will AMC Keep Rising?

I publish AMC’s, along with GME, MULN, BIOR, APE, LUCID, and other tickers short interest here.

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Will AMC Stock Squeeze in 2023?

January 23, 2023 / / 7 Comments
Will AMC Squeeze in 2023?
Stock Market News: Will AMC squeeze in 2023?

Will AMC squeeze again? In 2021, the movie theatre chain stock skyrocketed from $2.50 early that year to $72 per share in the summer.

Many retail investors held the stock even as the CEO cashed in more than $40 million.

The stock dropped more than -84% in 2022 leaving majority of holders with significant unrealized losses, and very few still in profit.

AMC Shareholders have continued to raise awareness of market injustices surrounding dark pools, naked shorting, and off exchange trading.

Since the events of the ‘meme stock’ frenzy in 2021, ‘We The Investors‘ has reached a historic milestone, representing the retail community in direct engagement with SEC Chairman, Gary Gensler.

Today, Ortex is reporting AMC’s short interest at a high of 22.10%.

This is nearly the short interest AMC had before the stock shot up from $14 to $72 per share.

The high short interest is a strong indicator AMC has the potential to squeeze again.

The question is, will AMC stock squeeze in 2023?

First, let’s dive into what triggered the event in 2021 to better understand whether today’s market conditions are in retail’s favor.

Related: How to Buy AMC Stock (2023 Guide)

What Caused AMC to Spike?

AMC Short Squeeze chart - Franknez.com.
AMC Short Squeeze chart – Franknez.com.

So, what caused AMC stock to go up?

In short, it was a high short interest percent and massive buying pressure.

#1. High Short Interest Percent

The short interest in a stock is the percentage of the float that is essentially being shorted.

When you have a lot of short sellers betting on the downside of a company’s stock, there’s a probability to squeeze them out of their positions if the price shoots up quickly.

Short sellers may see significant (unrealized) losses momentarily and choose to either close their positions for a loss or keep accumulating short positions if they think shares will come back down.

What happened with AMC is that when the stock first shot up from $2.50 to $20 per share, short sellers began to take big positions.

Therefore, we saw the short interest increase.

But once AMC’s share price began to rise to $9 per share, then $14 per share, and eventually break that resistance, short sellers began to close their positions to refrain from accruing larger losses.

This is when we slowly began to see AMC’s short interest decrease from 22% to 14%.

As AMC began to come down from its all-time high in June, AMC’s short interest began to rise again, signifying short sellers were getting back in.

Today, AMC’s short interest is at 22.10% according to both Fintel and Ortex.

This is big.

#2. Massive Buying Pressure

Massive buying pressure is what triggered AMC shares to rise.

See, this wasn’t just a one-time spike, but rather days of nonstop bullish momentum.

AMC Entertainment stock was experiencing extremely high intraday volume of 700 million and 900 million prior to hitting its all-time high.

Previous months still consisted of several hundreds of millions in trading volume.

Discords were flooded with anxious and excited investors as they saw shares rise over and over again.

The battle of $8.01 was known as a victorious day for retail investors who were buying the dip every time the market would bring the price down.

Days such as the battle of $8.01 influenced what was to come next.

Absolute Armageddon for hedge funds betting against AMC Entertainment and an emerging retail community Wall Street never saw coming.

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Market Conditions for A Short Squeeze

The market conditions were completely different when AMC surged to $72 per share than what they are now.

In 2022, we entered a bear market that brought the entire market to its knees.

Experts are saying we may experience continued volatility in the market as signs of an upcoming recession rise in 2023.

Also read: Where Is the Stock Market Headed in 2023?

However, stocks such as AMTD Digital, Inc. proved that market conditions don’t have to be set in a bull market to squeeze.

HKD stock surged more than +20,000% in August of 2022.

Shares rose from $13.54 to $2,200 in weeks from sheer buying pressure, fresh from its IPO.

The truth is a short squeeze may be triggered both during a bull market and bear market.

One key element we’re discovering that triggers a short squeeze is heavy buying volume.

Heavy buying volume is what allowed GameStop to squeeze to $483, HKD to $2,200, and AMC to $72 per share.

*Poll of The Week

Will AMC Squeeze in 2023?

will AMC squeeze in 2023.
Will AMC squeeze in 2023? AMC stock news and updates.

AMC Entertainment has both the high short interest and retail community behind it to trigger another short squeeze in 2023.

However, recession conditions might cap the ability for retail investors to buy in heavy again this year.

Layoffs, rising interest rates and inflation could slow down how much liquidity is being pumped into the stock market.

This makes triggering an AMC short squeeze in 2023 more challenging than if the U.S was currently a thriving economy.

Also read: How to Get Your Money Right in 2023

Shareholders should not be discouraged; anything can happen this year.

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Top 7 Stocks Outperforming the Market Already This Year

January 20, 2023 / / 1 Comment
Stock Market 2023: Top stocks outperforming the SPY.
Stock Market 2023: Top stocks outperforming the SPY.

The SPY is currently up +2.05% in only the first two and a half weeks of the new trading year.

Shares of the S&P 500 index are trading at $388.64 at the time of this publication.

Last year, the index came down more than -10% bringing many companies down -50% to more than -80% on the year.

Today, stocks seem to be doing much better than experts and analysts anticipated.

Despite coming from a bear market, and all signs signaling an upcoming recession, early investors in some stocks are already killing it.

Here are 7 stocks currently outperforming the market already this year.

  1. Biora Therapeutics (NASDAQ:BIOR) +77.45%
  2. AMC Entertainment (NYSE:AMC) +40.46%
  3. AMC Preferred Equity (NYSE:APE) +31.67%
  4. Peloton Interactive (NASDAQ:PTON) +28.57%
  5. Tesla Inc. (NASDAQ:TSLA) +17.64%
  6. Hycroft Mining Holding (NASDAQ:HYMC) +15.98%
  7. GameStop Corp. (NYSE:GME) +10.70%

#1. Biora Therapeutics (BIOR) Stock

Stock Market 2023: Top stocks outperforming the SPY.

Biora Therapeutics (NASDAQ:BIOR), formerly known as Progenity (PROG) stock was up more than +182% in the first week of the new year.

Today, BIOR stock is up more than +77% this year.

The stock surged from $2 per share and peaked around $7.36 last in only the second week of the new year.

BIOR is extremely shorted, we’re talking about the company being one of the most shorted stocks in the market at the moment.

Ortex is reporting the company to have a whopping 243.95% short interest.

Why did BIOR stock surge so much this year already?

Biora Therapeutics is on track to move into clinic with its lead targeted therapeutics program.

If approved, it will be massive for the company and for shareholders alike.

Read More BIOR Stock News Here

#2. AMC Entertainment (AMC) Stock

Stock Market 2023: Top stocks outperforming the SPY.

AMC Entertainment (NYSE:AMC) stock continues to be one of the biggest ‘meme stocks’ even after its massive debut in 2021 when shares rose from $2.50 to $72 later that year.

The stock, at the publication of this article, is trading at $5.52, the same share price it was two years ago before gaining serious traction.

AMC Entertainment continues to improve its fundamentals and remains the #1 leader in the movie theatre industry.

While online streaming has grown to become quite popular, especially during the pandemic, experts are beginning to weigh in on AMC’s side in 2023.

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“

Even Amazon associates who asked not to be identified, per Bloomberg News, are stating the company plans to invest $1 billion per year in the movie theatre industry.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic”, said CNBC.

Read Breaking AMC Stock News Here

#3. AMC Preferred Equity (APE)

AMC Preferred Equity (NYSE:APE) is currently up +31.67% this year-to-date.

The equity made its debut in August of 2022 as a dividend for AMC shareholders.

AMC Entertainment has been able to capitalize on the equity by using funds to pay off debt and raise capital for the company.

Shares have plummeted since its inception; however, we’re seeing APE shares outperform the market too.

Plans to merge APE shares with AMC common stock will soon be up for shareholders to vote on.

Also Read: AMC Warns Short Sellers of Possible APE Short Squeeze

#4. Peloton (PTON) Stock

Peloton Interactive, Inc. (NASDAQ:PTON) is an American exercise equipment and media company based in New York City.

The company’s products are stationary bicycles, treadmills, indoor rowers equipped with Internet-connected touch screens that stream live and on-demand fitness classes through a subscription service.

Company shares are up +28.75% year-to-date.

Peloton recently brought Leslie Berland, Twitter’s former marketing head, as its next chief marketing officer, per Bloomberg news reports.

She previously helped lead American Express for 10 years.

Peloton is trying to shift the tides after a rough 2022, when its stock dropped more than 75%.

The company in November posted wider losses than analysts expected for its first fiscal quarter.

Berland said in an announcement that she is “thrilled” to join the company at this “unique moment in its transformation journey.”

Read More Market News Here

#5. Tesla Inc. (TSLA) Stock

Stock Market 2023: Top stocks outperforming the SPY.
Stock Market 2023: Top stocks outperforming the SPY.

Tesla Inc. (NASDAQ:TSLA) had one of its worst years yet in 2022.

However, the company stock is outperforming the market today already gaining +17.64% in gains this year-to-date.

Tesla CEO Elon Musk sold 22 million shares of the company last year cashing in approximately $3.6 billion earlier in December according to this SEC filing.

After the massive selloff, Elon said during a Twitter space call that he will not sell any Tesla shares for about two years.

Musk said he sees a ‘serious’ recession in 2023 and is preparing for a worst-case scenario.

And although experts are saying a recession is likely to strike the U.S. economy during the first quarter of 2023, the company stock seems to be performing quite well today.

Related: Is Tesla Stock a Buy Right Now or Should You Wait?

#6. Hycroft Mining Holding (HYMC) Stock

Shares of Hycroft Mining (NASDAQ:HYMC) rose 25% earlier this year when the company announced it had discovered more gold and silver than it had anticipated.

Majority of the company is owned by AMC Entertainment.

22% of the company to be exact.

When the movie theatre chain acquired the mining company, headquartered in Nevada, shareholders followed.

Hycroft was able to raise an incredible $195 million in just two weeks after the acquisition.

Today, company shares are up nearly +16% year-to-date.

#7. GameStop Corp. (GME) Stock

GameStop Corp. (NYSE:GME) shares are currently up +10.70% year-to-date.

GME stock continues to be a retail investors favorite despite its popularity coming down since the ‘meme stock’ frenzy of 2021.

Today, shareholders are registering their shares through DRS to prevent short sellers from attacking the company stock.

According to GameStop, approximately 30% of GME’s float is registered with the Direct Registration System (DRS).

This equates to 71.3 million retail shares.

How much of GME’s float is owned by retail investors?

Nearly 70% of the float is owned by individual shareholders according to Vickers Stock Research.

While DRS certainly prevents the company from being shorted, it’s only one piece of the puzzle for a GameStop short squeeze.

Shareholders will need to create massive buying pressure next.

Read More About GameStop and DRS Here

Check out the latest market news for retail investors!

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AMC’s Cost to Borrow Has Hedge Funds Burning Money

January 18, 2023 / / 20 Comments
AMC Cost to borrow
Market News: AMC’s cost to borrow increases

AMC’s cost to borrow continues to rise.

In the past, we’ve seen how important this data has been regarding major price runup.

Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.

In this article I’m going to break down the number figures and explain why the CTB and other data is pointing AMC in the right direction.

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Cost To Borrow explained

The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.

For example:

AMC has approximately 179.25 million shares on loan as of the publication of this article.

Hedge funds are paying 135% annually on these loans.

This translates to $241.9 million per year, or $20.16 million per month.

In the meantime, it’s costing retail investors $0 to hold their positions in AMC stock.

Hedge funds will continue to pay more as AMC’s cost to borrow rises.

Free Live Daily Updates: AMC Short Interest + more

Short interest

AMC short interest

AMC’s current short interest is: 22.10%.

This is the percent of a company’s free float that is shorted.

AMC is a short squeeze play because of this number figure.

This number figures tells retail investors that there is a high interest in shorting the company stock.

It’s this data that allowed retail investors to foresee big price moves in January and in June of 2021.

This same data tells investors today that AMC has the potential to hit another all-time high.

Some of you might be familiar with the correlations between short interest and rise to $72 per share last year.

AMC’s short interest dropped from 22% to 20%, then to 14% when it ultimately skyrocketed in price from $14 per share to $72 per share.

Despite what mainstream media has said in the past, no, AMC’s short interest is not too low to squeeze shorts from their positions.

Related: 93% of AMC Shareholders Say They’re Holding This Year

Will AMC’s cost to borrow force shorts to close?

AMC short squeeze
AMC cost to borrow – AMC short squeeze

Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.

AMC is no longer the same endangered company it once was during the pandemic.

The company has improved every quarter since 2021 and has managed to get rid of most of its debt.

The world’s largest movie theatre continues to innovate and adapt to the changing world.

While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.

Short sellers are betting against a recovering and innovating film industry generating billions in revenue now.

As AMC continues to prove itself fundamentally and the cost to borrow rises, expect short sellers to begin closing their short positions.

Here is where patient investors will see massive returns.

Related: Netflix’s Showing in Theatres Could Have Made $200 Million!

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Avatar Exceeds AMC Entertainment CEO’s Box Office Prediction

January 17, 2023 / / 1 Comment
Adam Aron AMC Entertainment CEO
Business News: Avatar: The Way of Water Exceeds AMC Entertainment CEO’s Expectations.

AMC Entertainment (NYSE:AMC) CEO Adam Aron said his predictions were easily surpassed as Avatar: The Way of Water exceeded $570.3 million domestically.

Adam Aron said on Twitter last week, “Next week, it has a good short of hitting $550 million domestic, $1.8 BILLION worldwide. Those who say movie theatres are an anachronism or dead are wrong, wrong, wrong.”

The CEO says the blockbuster movie could exceed $600 in domestic ticket sales and $1.8 billion globally.

The Avatar sequel’s fifth-week performance means it is now the 13th highest-grossing movie of all time at the U.S. box office, overtaking 2008’s The Dark Knight and 2019’s Lion King remake, according to Box Office Mojo.

While it remains at the same spot as last week in the worldwide all-time rankings, the movie is expected to overtake Spider-Man: No Way Home sometime this week and begin closing in on Avengers: Infinity War and Star Wars: Episode VII – The Force Awakens.

Cameron has previously stated that Avatar: The Way Of Water needs to earn around $2 billion just to break even. The sequel’s steep budget however includes the cost of filming Avatar 3 and developing the scripts for a fourth and fifth film.

Source(s): FrankNez, Forbes.

U.S. Box Office Rankings – Friday to Monday (est.)

  1. Avatar: The Way Of Water (Week 5) — $38.5 million
  2. MEG3N (Week 2) — $21.2 million
  3. Puss in Boots: The Last Wish (Week 4) — $17.3 million
  4. A Man Called Otto (Week 3) — $15 million
  5. Plane (Week 1) — $11.6 million
  6. House Party (Week 1) — $4.4 million
  7. Black Panther: Wakanda Forever (Week 10) — $2.6 million
  8. The Whale (Week 6) — $1.8 million
  9. Whitney Houston: I wanna Dance With Somebody (Week 4) — $1.3 million
  10. Waltair Veerayya (Week 1) — $1.2 million

Movie titles continue to bring in millions of dollars despite Wall Street doomsayers short on the industry.

At some point, the narrative has to change.

Sources say Amazon is planning to invest $1 billion per year in the movie theatre industry.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

Amazon is still sorting out this strategy said people who asked not to be identified.

That number of releases puts Amazon on par with major studios such as Paramount Pictures, says Bloomberg.

Streaming Services Aren’t Enough

As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.

“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source: Variety.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“

The Rise of The Movie Theatre Industry Is Here

Avatar has AMC Entertainment’s CEO Adam Aron laughing at short sellers who are betting against the company and movie industry as a whole.

Shareholders have been stating for years now that the theatrical movie experience is irreplaceable.

The public continues to prove that while online streaming platforms such as Netflix and Disney+ are convenient, nothing beats the cinema experience.

But I’m curious to hear your thoughts on where you think the movie theatre industry is headed.

Leave a comment down below.

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Where is AMC Entertainment Stock Headed Next Week?

January 15, 2023 / / 4 Comments
will AMC stock go up next week?
Market News and Updates: Will AMC stock go up next week?

AMC Entertainment stock closed the trading week up more than +30%.

The company stock seems to have bottomed out around $4-$5 key levels.

Fintel is currently reporting AMC’s short interest at 22.02%, which means short sellers continue to short the movie theatre chain.

More than half of AMC’s orders are being moved to dark pools, suppressing true retail demand.

However, the movie theatre stock is currently up +28.75% this year-to-date.

Higher trading volume days has caused shares to rise despite off exchange trading.

Where is AMC Entertainment stock headed next week?

Here are some high probabilities and scenarios.

AMC Stock Bounces from Key Support Levels

did AMC bottom out?

AMC Entertainment stock declined more than -70% last year, as most of the market did.

The stock showed major support around the $6 level before getting crushed below $4 towards the end 2022.

Share prices have retested $4 and $5 indicating a clear bounce and bottom for the movie theatre stock.

Volume has risen despite ongoing shorting in the company.

AMC is currently up more than +28.75% in only the first two weeks of the new year.

New investors who purchased the stock in January are currently up this year, but long-term shareholders continue to hold unrealized losses with few breaking even and even fewer still in profit at current levels.

AMC Entertainment, along with GameStop, Mullen Automotive, Meta Materials, and many others, have been targets for big short sellers.

This part of the equation alone makes these companies short squeeze plays.

Will AMC stock go up next week?

Here are a few predictions based on current technical analysis.

Also Read: Why is MULN Stock Going Down?

Will AMC Stock Go Up Next Week?

AMC Entertainment stock will need to break above the $5.13 level to continue its current uptrend.

A break above $5.13 has the potential to take AMC’s share price up to $5.34, then to $5.55.

We are seeing resistance at this level after hours.

Will AMC Stock go up next week? AMC technical analysis Webull.
Will AMC Stock go up next week? AMC technical analysis Webull.
Where is AMC headed next week?

A selloff or weak buying pressure at the start of Tuesday’s trading day may take AMC’s share price down to retest $5 and possibly even $4.90.

The stock may go as low as $4.77 if buyers don’t step in.

Does Volume Matter?

Momentum will be the catalyst for AMC, despite the large volume of off exchange trading.

Example:

Since approximately 50% of retail’s trades are happening outside of the lit exchange, it means that out of 100 trades, 50 of them are lit.

An increase of 1,000 trades means now 500 trades are lit.

100,000 trades means 50,000 trades are now lit, compared to a low volume buying day of just 100 trades with 50 being lit.

And so on.

Buying pressure matters.

This is why retail investors have always been the biggest catalyst for a short squeeze.

Will the Short Thesis Eventually Change?

The rise of the movie theatre industry is here.

Recent developments have the potential to change the short thesis and enable short sellers to go long instead; closing their short positions.

Changing fundamentals, alliances, and opinions about the movie theatre industry by big players will have a big impact on where AMC’s share price goes in the near- and long-term future.

We want to see AMC’s market cap grow, debt come down, revenue increase, and more money going into the development of new movie titles.

Partnerships and collaborations will demonstrate how the movie theatre industry is a necessary part of the entertainment industry and key to bigger profits in the future, yes, even for online streaming giants.

Would you agree or disagree?

Leave your thoughts in the comment section of the blog down below.

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