Tag: AMC Entertainment News (Page 1 of 8)

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

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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FrankNez News Today – Stock Market News, Business News + more.

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Avatar Exceeds AMC Entertainment CEO’s Box Office Prediction

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.

For more AMC stock news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

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The Rise of The Movie Theatre Industry Is Here

Movie Theatre Industry
Market News: Should you invest in the movie theatre industry?

The movie theatre industry is no longer struggling to attract movie lovers back to the big screen.

While pandemic lockdowns threatened the existence of thriving cinemas, rapidly growing numbers of attendees have continued to grow over the past two years.

The only thing movie theatres are missing is more movie titles, says CEO of AMC Entertainment Adam Aron.

Last year, the industry leader had a 33% increase in attendees from Q3 of 2021, seating more than 53 million guests in Q3 of 2022 alone.

The company has also shown massive progress as debt is substantially cut every year.

AMC’s debt seems to be the #1 problem for Wall Street.

If AMC is able to eliminate this burden, the company might be able to offer more incentives to its shareholders again, such as a cash paying dividend like prior years.

AMC and APE Shares Bounce Back from Record Lows

AMC and APE shares are making a big comeback beginning of the new year already.

AMC (NYSE:AMC) shares have managed to rise above its low of $3.86 to $5.01, respectively.

The movie theatre’s equity APE (NYSE:APE) fell below $0.70 in December but has managed to rise to current levels around $1.56.

As of Thursday, AMC shares are up nearly +26% and APE shares are up +17% in the past 5 trading days.

AMC Entertainment stock has been a buy for quite a while now given the high probability that it has bottomed.

Although shares can always come back down to retest key levels, an increase in trading volume is suggesting that more investors have begun to buy the movie theatre stock again.

Related: How to Buy AMC Stock (2023 Guide)

Will AMC Have a Short Squeeze Soon? All You Need to Know

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.

In recent news, Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.

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.

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.

The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy. 

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.

Amazon is Investing Billions in the Movie Theatre Industry

Stock Market News: Amazon plans to invest billions in Movie Theatre Industry.
Stock Market News: Amazon plans to invest billions in Movie Theatre Industry.

Amazon plans to invest more than $1 billion per year into theatrical distribution releases per Bloomberg news.

Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.

This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.

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.

CNBC says this is a positive sign for the movie theatre industry.

“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.”

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Did AMC Stock Just Bottom Out?

Has AMC stock hit the bottom? Market news, stock updates + more.
Has AMC stock hit the bottom? Market news, stock updates + more.

AMC stock surged to $4.92 closing up +21.18% on Wednesday.

No major catalyst moved the stock, though trading volume did exceed almost twice its average volume of 26 million.

The movie theatre chain stock demonstrated strong bullish price action today, did AMC stock just bottom out?

Analysts at TipRanks gave AMC Entertainment stock a price forecast of $4.50 at its highest on a 12-month period but AMC blew those estimates fairly quickly.

The stock is having a bounce after it’s hit the $3.80 levels for the past few weeks.

Technical analysis shows us a break above $4.96 will take AMC stock up to retest $5.30.

#AMCSTRONG and #AMCtothemoon are trending on Twitter as shareholders rejoice from the bullish price action.

Will the movie theatre chain company be able to maintain this momentum?

Let’s discuss it.

Why is AMC Stock Going Up?

Why is AMC stock going up? Stock news, stock updates + more.
Why is AMC stock going up? Stock news, stock updates + more.

It’s very likely AMC has bottomed out and is beginning to bounce back up.

All this means is we’ve identified a key level of resistance for the movie theatre stock around $3.80-$4.00 levels.

There’s another strong demand zone around $5-$6 levels, the same ones we saw in 2021 before massive buying pressure took share prices up to $9 then $14 per share.

Analysts fail to familiarize themselves with the events, catalysts, and community that was able to drive big volume into AMC stock.

AMC stock was never meant to be a fundamental trade for the majority of retail investors, another key point that analysts fail to recognize.

Massive buying volume and the closing of short positions is all a stock needs to skyrocket to unprecedented numbers.

Of course, short interest must be high enough to fuel additional buying power.

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AMC Stock At A Glance

Out of nearly 4,000 market participants, 93% said they are or will still be holding AMC Entertainment stock in 2023.

Majority of shareholders might be down significantly, but investors continue to buy company shares that are heavily shorted.

How many retail investors are still holding AMC stock in 2023?
How many retail investors are still holding AMC stock in 2023?

AMC’s current short interest is now at 22%, per Fintel.

Heavy buying pressure took AMC’s share price from $5 to $9 and then to $14 before getting out of hand for short sellers.

Around the same time, AMC’s short interest was also at 22%.

As share prices rose to $72 per share, we saw AMC’s short interest deflate to 14% before slowly climbing back up again.

Is history about to repeat itself?

The recipe for a short squeeze is certainly there.

But investors must be warned to never invest more than they’re willing to lose.

And while shareholders are anticipating a new all-time high during the next run, it’s also important to consider creating a ‘take profit’ exit strategy.

Seeing massive gains and then letting those profits turn into losses is a hard pill to swallow for most investors.

Always have a plan.

Related: How to Buy AMC Stock (2023 Guide)

Is Now the Time to Buy AMC Stock Again?

Stock Market News by Franknez.com | Is now the time to buy AMC stock again?
Stock Market News by Franknez.com | Is AMC ready to bounce?

All signs are pointing out to an AMC bottom and shareholders aren’t leaving.

If we continue to see a bounce continuation, it could signify the movie theatre stock is making way for the next leg up.

Value investors could take advantage of any major price action that may come of it in the short term.

Otherwise, holding out for a potentially large short squeeze could prove to be rewarding in the long run.

But I’m curious to know what you think.

Is AMC on the verge of squeezing short sellers from their positions soon?

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

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How Big Could an AMC Short Squeeze Potential Surge?

AMC Short Squeeze Potential
Stock Market News: Just how high can AMC short squeeze spike up to?

An AMC short squeeze potential has been a huge debate for retail investors and shareholders amongst the Reddit and social media communities.

Exactly how high an AMC short squeeze could possibly go up to has plagued AMC shareholders since the very first publication of the short interest data (archived data).

AMC Entertainment stock was trading around $14 when I began to share the short interest data after shooting up to $22 per share during its first big push from $2.50.

The stock fell back down to $5 per share but the short interest told a story, which is why I continued to share it, because retail investors had a shot at something big here.

Four months after my publications, AMC reached its all-time high of $72 per share.

I knew investors that were up thousands of dollars, and others that were up hundreds of thousands of dollars.

Another community member posted his brand-new Polestar.

You can actually go and see their comments on my Instagram highlights under ‘Gains‘.

But what’s more interesting is that AMC never shot up to its potential, did it?

In this article, I’m going to go over AMC short squeeze price predictions along with some TA on key levels the movie theatre chain stock will have to break in order to truly reach its potential.

Let’s get started.

AMC Stock Price Today

Today, AMC stock is trading around $3-$4 per share, respectively.

Shares rose to $8 in December before rejecting and coming back down to roughly $6 and eventually to current share price levels.

2022’s bear market dragged many companies down, and AMC Entertainment Holdings Inc. was no exception.

And with talks of a recession creeping in this year, it’s difficult to determine whether prices will stagnate or bounce back soon.

While a short squeeze does not discriminate whether we’re in a bear market or bull market, it’s heavy buying pressure that will ultimately trigger it.

And while AMC’s trading volume hasn’t been anywhere near 2021’s levels, it doesn’t mean it can’t be later this year.

How High is An AMC Short Squeeze Predicted to Go?

amc short squeeze price prediction

There are many AMC short squeeze price predictions from the retail community.

One of the biggest price predictions being $1,000.

In the past year, some would have laughed at you for your lesser capability to see beyond.

More ambitious short squeeze predictions say AMC can reach upwards of $10,000 per share!

Then of course, you have the strong big D energy ‘apes’ that say an AMC MOASS (mother of all short squeezes) will yield $100,000-$500,000 per share.

All fascinating without a doubt.

You might ask, what in the world led retail investors to believe such impossible numbers could be possible to begin with?

The truth is, while hypothetical, these numbers (technically speaking) may be possible.

See, what happened was that wrinkled brain apes from the Reddit community began to experiment with a series of predictions based on the number of naked shares circulating outside the original (and legal) float.

Redditors began to create brackets of equations to identify what (potential) share prices could look like if hedge funds (hypothetically) closed billions upon billions of ‘synthetic shares’.

What did we find?

Denial. Over and over again.

Mainstream media and Wall Street bullied the retail community into a corner and said naked shorting no longer existed.

Retail investors were called conspiracy theorists.

Naked shorting later proved to be the highest probable outcome for an incredible amount of FTDs (fails-to-deliver) in AMC.

CNBC’s Melissa Lee and FOX Business’s Charles Payne eventually began to touch topic on the matter after Trey’s Trades addressed retail’s concerns on interviews.

Naked shorting was now officially being discussed on live television.

Related: Latest Report Shows AMC FTDs Spiked to $31 Million

But Wall Street kept pressing, denying the existence of dark pools, exchanges used to essentially suppress the price of security or to refrain from the full demand of a stock to reflect its actual share price.

In February of 2022, SEC Chairman Gary Gensler said in an exclusive Bloomberg interview that 90%-95% of retail orders are not processed through the lit exchange but rather through dark pools.

In an interview later in December, the Chairman told ‘We The Investors‘ that he understands retail’s frustrations.

The SEC Chairman was asked if dark pools suppressed the price of stock and whether retail investors could influence the price of a stock if majority of orders traded in the lit exchange.

While there was no direct answer to the suppression of price, the Chairman says that with so much trading happening off-exchange, he doesn’t think it’s a leveled playing field as dark pools give institutions an unfair advantage.

So far, there has been no ‘official confirmation‘ of ‘synthetic shares’ to back up the highest AMC short squeeze predictions.

There’s only been denial.

What’s an AMC Short Squeeze Potential Factoring Out Synthetics?

AMC all-time high price

I’ve shared this equation in the past and the prediction is not accounting for synthetics.

When AMC surged to $72 per share, its short interest had dropped from 22% to 14%, an 8% difference.

Now, while there is no sure way to identify how large positions are per percentage drops, we can gain a little more clarity by analyzing these proven numbers.

Is it probable that if AMC’s short interest had dropped another 8% from 14% down to 6%, the stock would have surged twice its all-time high of $72 per share to $144 per share?

Sure – although not 100% certain, we can begin to see a clearer picture here.

Could we then predict an AMC short squeeze potential to peak between $100-$200 as a rough estimate?

Absolutely.

At these numbers, every shareholder (even late buyers) will be in profit.

Having reached $72 per share, it’s fair to say $100-$200 per share is a fair short squeeze potential when you exclude the existence of synthetics.

Some may agree, others will certainly differ.

But if there’s a hard lesson I’ve learned as an options trader, it’s been to never get too greedy when you’re already in profit.

Are Shareholders Still Holding AMC?

There’s been some controversy recently within the community surrounding the CEO.

There are shareholders who criticize Adam Aron for cashing in more than $40 million between late 2021 and early 2022 while shareholders held in order to prevent shares from sliding.

Others are happy to hear the CEO has no interest in selling shares any time soon and has rejected a pay raise for the new year.

Despite the controversy, majority of shareholders continue to hold their stock.

So far, more than 90% of shareholders say they continue to hold their AMC shares in 2023.

I will update the numbers as more investors continue to participate.

Still, some argue that those who voted ‘no’ may have never been shareholders in the first place.

Nasdaq reports that AMC’s Preferred Equity (APE) has only 0.18% institutional ownership.

This means retail investors are the sole owners of AMC’s equity too.

So, the sentiment lines up.

Related: How to Buy AMC Stock (2023 Guide)

What is Your Top AMC Stock Price Prediction?

Your AMC price prediction might differ from someone else’s in the retail community.

Leave a comment down below what an AMC short squeeze potential looks like to you.

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