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.
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
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. “
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)?
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BIOR stock is up more than +71% this year-to-date but surged as much as +182% during the first trading week of January.
Formerly known as ‘Progenity’ (PROG), Biora Therapeutics stock is currently trading at $4.12.
The company may be heavily shorted, but there’s big opportunity for retail investors if the company’s clinical trials go well.
And so far, the company seems to be on track.
A big announcement such as the approval of their therapeutics program could trigger short sellers to run for the hills, initiating a short squeeze in Biora Therapeutics.
Will BIOR stock go up to its hundreds of dollars per share IPO levels again?
Here’s the latest BIOR stock news.
BIOR Stock News Today
Biora Therapeutics is on track to move into clinic with its lead targeted therapeutics program.
For Biora’s Targeted Therapeutics Platform, which is focused on treatment of ulcerative colitis (UC), the company remains on track for an IND filing for its PGN-600 program followed by clinical trial initiation.
During Q4 2022, Biora continued its engagement with the FDA with a pre-IND supplemental Type C filing requesting agency feedback on its proposed PGN-600 clinical development plans, including the company’s proposed approach to toxicity studies and other aspects of its clinical plan.
“The recent Type C response from the FDA further strengthens our confidence in our plans to enter the clinic during the first half of 2023 with IND filing followed by trial initiation in Q2, and data readouts anticipated in Q3,” said Adi Mohanty, Chief Executive Officer of Biora Therapeutics.
For Biora’s Systemic Therapeutics program, the company has been transitioning from early concept to a clinical-ready device.
With several of the key device upgrades implemented, the company expects to report data from preclinical studies on its next-generation device during Q1 and Q2 of 2023.
If clinical trials prove to be a success, Biora Therapeutics’ platform will be approved for use.