Are you wondering whether to buy AMC stock today?
Deemed a popular ‘meme stock’ that shook Wall Street last year, it’s headed for another massive run this year.
See, the stock is still heavily shorted despite an incredible pandemic recovery.
The largest movie theatre chain in the world has innovated in ways many companies have yet to.
When AMC made headlines in January of 2021 when it reached $20 per share, retail investors jumped in.
Then it made headlines again in June when the stock reached $72 per share, squeezing only a few short sellers.
The data that predicted these runups shows a bigger wave is on the horizon.
Here is why it’s the perfect time to buy AMC stock today.
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Here is why AMC stock is a strong buy today
#1. The stock is severely undervalued
AMC stock traded above $2 per share before it squeezed a few short sellers in January of 2021 and hit $20.
The movie theatre chain was in danger of going bankrupt until retail investors proved to be a lifeline when it armed the company with a billion dollars.
AMC has been working on a recovery plan ever since.
Later that summer, AMC squeezed a few more short sellers reaching an all-time high of $72 per share.
Today, AMC has innovated more than most traditional companies being one of the first to enter the cryptocurrency and NFT world.
The company has invested a quarter billion dollars in state-of-the-art laser projectors and acquired several new theatres.
Fundamentally, AMC is undervalued, according to retail.
#2. Retail investors own the float
When you own AMC stock, you legitimately own the largest movie theatre chain in the world.
More than 90% of AMC’s float is owned by retail investors.
This corporation has now become a company owned by the people.
Several innovations implemented by AMC Entertainment has been because of shareholder opinion.
The company believes its shareholders have the ideas and innovation to take the century old movie theatre chain to the next level.
The CEO of the company engages with AMC shareholders on Twitter and includes them in quarterly earnings calls.
Related: AMC Dominates with Powerful Q1 Results: Highlights
#3. AMC has the perfect short squeeze setup
AMC has the setup to reach a new all-time high.
If you missed the run to $20 or $72 per share last year, buying some AMC stock today could prove to be a fruitful trade down the road.
Not only does AMC have a high short interest, but executive order 14032 will be going into effect early June.
Last time it went into effect, AMC ran up to $20 and $72 per share.
Mainstream media has been trying to scare people from their money for over a year now to prevent the ‘meme stock’ from hurting their corporate bosses shorting the stock.
However, retail investors continue to buy AMC stock today to squeeze shorts from their positions.
Must Read: Executive Order 14032 Could Be a Big Deal for AMC Stock
#4. There’s no other community like it
AMC has an incredible community.
Referred to as ‘apes’, retail investors voice market injustices in efforts to create a better investing world for future generations.
What started as a simple short squeeze play turned to a movement for market fairness and transparency.
Yes, AMC stock is undervalued, and yes it has the perfect short squeeze setup.
But the community is the reason why even after you cash out big, you’ll want to stay.
#5. There is massive upside potential
But of course, one of the biggest reasons why it’s the perfect time to buy AMC stock today is because of its massive upside potential.
Last year, AMC saw gains upwards of +3000%.
But very few took profits because the data shows there is plenty more room for AMC stock to squeeze.
While the market in general might have dropped significantly, a reversal is imminent.
AMC will be no exception.
However, the difference with AMC stock is that short sellers eventually have to close their positions, resulting in a short squeeze.
Retail investors predict this third wave will surpass AMC’s all-time high of $72 per share.
Be sure to join the topic discussion in the comment section of the blog down below.
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Related: These Two Signs Will Tell You a Short Squeeze is Over
Thanks for this Frank. I’m just continuing to hold my 777 shares($37.12 avg price). If it hits below $10, i might buy again. Walk by Faith. We are almost in the Promised Land. God is good😊🙏
Hi Apes , This is Shimmer and I think we are going to be rich !
🚨2021 AMC Total Vol. vs Darkpool Vol. vs Darkpool Short🚨
Tot Traded Vol: 28,861,160,055
Tot DP Traded Vol: 15,229,785,328(52.77% of Total Traded)
Tot Vol Reported: 24,065,954,138
Tot Short: 11,288,161,387(46.91% of Reported Vol)
DP Short: 6,646,133,767(58.88% of Total Short)
Frank, is it possible that Short Sellers could simply sell their stocks to one another and close their positions?
i.e. Company A gets a million shares, closes 10,000 short positions (100 shares each), then sells their 1,000,000 shares to company B for the same price who closes 10,000 of their positions who then sells to company C who then sells back to Company A. Given what we’ve seen with PFOF/spoofed sell orders/Off Exchange transactions, what prevents this kind of chicanery?
Waiting for an answer from Johann S. question please
Let’s start a discussion! Leave your thoughts below.