AMC Entertainment’s (NYSE:AMC) short borrow fee has risen to 244.40%.
This is the fee short sellers are paying annually to borrow short shares in efforts to suppress the stock’s share price from creating a short squeeze.
Short sellers could face serious losses as the movie theatre chain stock begins to move up in price again from retail buying pressure.
As hedge funds begin to play the long game and begin to buy the stock again, the reality for the short seller could be disastrous.
In 2021, AMC shareholders were able to move AMC’s share price from $2 per share to $20, and then from $9 per share to its all-time high of $72 per share based on momentum alone.
AMC retested the heavy demand zone at $6 per share and even retested above the $8 level in the beginning of 2023.
However, share prices have broken below these levels today.
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AMC’s Rising Share Price Spells Trouble for Short Sellers
Is AMC about to squeeze shorts again?
Retail investors continue to take on Wall Street in 2023 as long-term shareholders continue to buy and hold the world’s largest movie theatre chain stock.
#AMCSTOCK and #AMCSQUEEZE have been trending on Twitter for two years in a row now, signifying shareholders aren’t leaving.
After price rejection at $6 levels, AMC found itself trading above $7 per share having retested $8.32 earlier this year.
AMC’s short interest is already over 25% according to Ortex data, higher than the short interest it was before it began surging to its all-time high.
Retail investors have been waiting for AMC to trade above $100 per share since 2021 when it nearly reached those levels.
And with the extremely high short borrow fee rate, shareholders are waiting to see the stock’s price skyrocket again.
Short sellers betting against the movie theatre chain are no longer paying the 1% short borrow fee rate like they were last year.
According to Stonk-O-Tracker, hedge funds are currently facing a 244.40% short borrow fee rate to short AMC.
Momentum Stocks: AMC Short Interest Information – Plus more.
Community, I’m going to be updating this list of momentum stock and their short interest and utilization daily (AMC short interest, BBIG, MULN, BIOR, GME, APE, and many others).
Be sure to bookmark this page for daily AMC short interest updates and more.
Other metrics being updated daily will include the cost to borrow, shares on loan, + short squeeze scores.
If there are other heavily shorted stocks you’d like me to update daily, please leave a comment below and I’ll be sure to look into them before adding them to the list!
– Frank Nez
#1. BBIG Short Interest
Short Interest: 15.59% | Utilization: 88.66 | Cost To Borrow: 11.54 | Shares On Loan: 56.03 Million | Days To Cover: 8.21
BBIG Short Squeeze Score: 83
(Updated Daily)
#2. MMAT Short Interest
Short Interest: 11.65% | Utilization: 96.41 | Cost To Borrow: 18.58 | Shares On Loan: 33.85 Million | Days To Cover: 4.75
In this article, we’re going to go over some of the latest developments in AMC, it’s history since redditors took over, and an AMC short squeeze update for the year of 2023.
AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.
Retail investors remain excited about the data that has been collected for years now.
Will we see an AMC short squeeze while we continue to ride today’s bear market?
And if so, how soon?
Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock and its short squeeze update and history.
Lets get started!
How soon will we see an AMC short squeeze?
Retail investors all want to know.
Is it this week?
Will it be next week?
Or, are we looking at a longer game here?
Here’s what we know.
Key Highlights
AMC closed at $4.55 on March 27th. The stock continues to be heavily shorted. AMC Entertainment is set up for a short squeeze despite its split.
Shareholders continue to buy and hold the stock.
AMC’s short interest data shows us the stock has the perfect setup for a short squeeze.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze.
“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”
Adam aron, President and CEO of AMC Entertainment
For those who thought AMC was a dead company, think again.
The company is now generating big revenue since it’s reopening and has beat every quarter since 2021.
Positive News for AMC Entertainment (Archive 2021)
Adam Aron gives positive news on AMC Entertainment – Archive 2021
AMC Entertainment has raised more than 2.2 billion dollars in cash
90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
Vaccinations and policies are making movie theaters safe
New movie titles are guaranteed to increase sales revenues
CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.
Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock.
That’s primarily because hedge funds are losing millions by the day.
A short squeeze could even put them out of business.
This is why it’s important and always has been for me to spread any positive news surrounding AMC.
I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.
Experts, analysts, and shareholders can’t identify an exact date and time.
However, the possibility of an AMC short squeeze is certainly possible given that it is still a very heavily shorted stock.
We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen.
Especially now that the SEC has announced some crackdown on shorting.
With Melvin Capital and other hedge funds out of the picture, it’s only a matter of time before others close their positions.
It’s tendie time!
Analyst AMC predictions 2021
With that being said, Trey’s Trades predicted a short squeeze in 2021. Trey has been a leader in the AMC community, though he’s recently taken time off from stock content on YouTube.
Data points towards AMC stock reaching $1000+ per share.
See what Trey had to say.
AMC short squeeze – AMC Stock Forecast – AMC Stocktwits
The real question is, how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to close their positions. This means that they will eventually have to buy AMC stock at the current share price.
If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.
2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.
This play essentially creates a supply and demand scenario between retail investors and short-sellers.
The results? A short squeeze.
Just make sure to take your profits.
The last thing you want is to see your gains turn into losses.
Hedge funds are doing everything they can to prevent a short squeeze
How are they doing this?
By promoting false information online (we’re certain you’ve seen it)
Through strategies such as short-ladder attacks in the market
And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
This is what retail investors can do to fight corruption:
Share content that presents facts (blog posts, analysis videos, etc.)
Continue to educate yourself and make investment decisions based on your personal analysis
We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.
If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.
That is, for those whose majority of shares were purchased at today’s current lows.
With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released.
Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share.
If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.
However, a short squeeze not happening is very unlikely as AMC is currently still one of the most heavily shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ.
Majority of the float is also held by retail investors, so the company has a huge support.
AMC hasn’t squeezed yet primarily to two main reasons.
The stock requires volume to drive the stock price action up
Shorts need to close their positions
Volume will surge as more and more retail investors (as well as institutions) get in on AMC stock.
Regarding shorts closing, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee.
You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.
In 2021, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.
This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.
However, Adam Aron has brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China.
Despite going around the breaking partnership, Wanda cashed out completely two years ago, making retail investors the biggest stakeholder in the company.
Is AMC Ever Going to Squeeze?
All the numbers point towards the right direction for a massive short squeeze.
Shorts and hedge funds continue to lose money every day.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Is AMC Entertainment stock about to squeeze this year?
“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.
Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.
Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?
Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.
A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.
However, the federal court has dismissed the case due to a ‘lack of evidence’.
Let us know in the comments section below what an AMC short squeeze would mean for you!
If you’re an AMC shareholder let us know in the comment section below.
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Together, we’ve been able to place AMC Entertainment articles on the #1 page results on Google and get featured on the ‘news’ section, combating mainstream media.
The mission of this platform is to spread the truth corporate media isn’t willing to, by giving the people in our community a voice.
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 a lot of 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.
AMC Short Squeeze – AMC Entertainment 2023 – AMC Stock Price – AMC Stock Squeeze
Will AMC squeeze This Year?
The Fool thinks you should sell your stock, but retail investors aren’t budging.
Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.
If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!
While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.
Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.
Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.
Will AMC stock squeeze in 2023? Game over short sellers | AMC Stock 2023 – AMC Stock Price
AMC has a high enough short interest to squeeze shorts from their positions in 2023.
Sitting at 24% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.
Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.
AMC will need momentum if it’s to see another massive runup in share price.
Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.
AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.
If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.
The AMC community has not had a problem holding or buying the stock.
One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.
The community has always been a beacon for change.
Apes will need to voice market concerns to elevate awareness.
AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.
Market manipulation continues to be a threat to every retail investor in the market.
AMC Entertainment was on the brink of extinction, it was about to go bankrupt.
Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.
Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.
The fight for a fair market continues in 2023.
For the ape community, this is more than just a short squeeze play.
Your support helps maintain all the costs it takes to run a blog at this scale.
Together, we’ve been able to place AMC Entertainment articles on the #1 page results on Google and get featured on the ‘news’ section, combating mainstream media.
The mission of this platform is to spread the truth corporate media isn’t willing to, by giving the people in our community a voice.
Market News: Strategist says Mother of All Short Squeezes is Here.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Is AMC Entertainment stock about to squeeze this year?
Here are 5 big signs that point to a mother of all short squeezes.
#1. AMC’s Short Interest is Really High
AMC Stock: Mother of all short squeezes
A short squeeze requires a company to be heavily shorted, which AMC is.
Did you know that before AMC’s share price surged from $14 per share to its all-time high of $72 per share it only had a short interest of 22%?
AMC’s short interest dropped from 22% to 14% as short sellers began to close their positions.
Well, I’m sorry to break it to skeptics, but AMC’s high short interest means there are shorts to squeeze.
I’d love to hear the rebuttal on this one; I don’t get the counterargument.
#2. There Are Millions of Shares on Loan
This ties back to AMC’s short interest data.
There are currently 197.10 million shares on loan, per Ortex.
These are shares that have been borrowed and not yet returned to the lender.
Hedge funds borrow these shares to short AMC stock.
At some point, these shares eventually have to be returned whether short sellers simply return them without necessarily selling them in the market, or through a ‘buy-back’ when closing their short positions.
Small spikes in AMC’s share price in correspondence with a drop in short interest suggests some short closing.
We’ve seen this on very high-volume trading days.
Now imagine all of these shares getting returned to the lender from shorts closing positions.
That’s a lot of buying power getting injected into the stock, forcing shares to spike.
Also known as a short squeeze.
#3.The Cost to Borrow AMC is Higher Than Ever
The cost to borrow is the annual fee hedge funds are paying to borrow shares to short the company stock.
AMC’s current CTB is a whopping 260%.
Hedge funds are currently paying more than $30 million monthly in fees alone.
This lucrative fee alone could incentivize short sellers to ditch this play and close their positions.
#4. AMC Entertainment Has the Community to Trigger Big Buying Pressure
AMC Stock: Mother of all short squeezes.
This is one of the biggest catalysts for an AMC short squeeze.
Why?
Because volume is what drove share prices up during the Wall Street Bets movement in GameStop, AMC, and other heavily shorted stocks at the time.
DFV knew that buying pressure is what would trigger spikes in GameStop, causing short sellers to run for the hills.
AMC shareholders replicated it in 2021, sending shares from $6 per share to $72 per share by literally buying every dip.
Yeah, it was wild -but it worked.
And shareholders haven’t left, they are still holding in 2023.
#5. The Company Isn’t Going Bankrupt
Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).
The short thesis made sense during the height of the pandemic when movie theatres were forced to close their doors to the public.
CEO Adam Aron said AMC Entertainment went from one day making millions per day to income suddenly halting due to the lockdowns.
But AMC Entertainment is no longer going bankrupt.
The company has improved and restructured its debt every quarter since 2021 and has beat earnings expectations ever since.
While the company does carry debt, Adam Aron has proved to be a master at raising cash from thin air.
Some of his efforts have included branded merchandise, the introduction of its equity APE, and through partnerships in the entertainment industry which Disney and Netflix.
The company is expected to launch a new credit card this year and put AMC branded popcorn in retail stores.
Other company’s on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list.
AMC’s high short interest of 25.33% has short sellers in a sticky situation as rising borrow fee rates limit the amount of shorting in the stock.
Short sellers will have to make a decision to either stick to their convictions and remain short despite rising share prices.
AMC shares have risen nearly 60% this year-to-date.
Short sellers have now lost grip as the cost to short the stock has dramatically increased.
AMC’s short borrow fee is a serious pressure cooker as it incentivizes shorts to close their positions – more so as movie theatre shares continue to rise.
While the interest rate is not cumulative, today’s high interest cripples shorts and gives buyers runway for big volume to make a greater impact than it did last year when the fees were extremely low and could suppress shares from rising.
Is a Short Squeeze Looming for Borrowers?
Latest AMC stock news 2023.
All signs point to an AMC short squeeze this year.
AMC Entertainment has enough short sellers to create big buying pressure in a ‘buy back’ when closing short positions.
Combined with retail buying pressure, an AMC short squeeze today is highly probable.
How high the stock will jump to is unknown.
In 2021, AMC shares rose more than 3,000% when it peaked at its all-time high of $72 per share.
On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.
The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”
To which the CEO answered:
“Joe, you nailed it. I could not have put it better myself”.
Looking at AMC’s Short Interest Today
S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the company’s short interest.
AMC’s short interest per S3 Partners andOrtex data is nearly identical.
So, why does it matter?
See, AMC stock’s short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021.
Redditors saw AMC’s high short interest data could drive short sellers to close their positions by buying the stock as a collective.
Shares rose from $2 to more than $20 per share in January and from $9 to more than $72 per share later in June.
AMC’s short interest came down to 14% after the surge but began to rise again all throughout 2022.
Now the stock’s short interest is around the same as it was when shares spiked to its all-time high.
They missed GameStop’s squeeze too, so AMC became very attractive, especially at such a lower price point.
This article was seen by more than half a million people and it attracted a lot of buyers to the stock.
Four months after the publication, AMC Entertainment stock squeezed to $72 per share.
Although many investors are still holding their shares in 2023, many of my readers ended up capitalizing on the move back in June.
AMC Gain Porn
Several readers were up 6-figures at some point.
One even shared the Polestar they purchased from their profits.
Reader buys Polestar with AMC gains – Franknez.com.Reader sees $720K in profit from AMC gains – Franknez.com.Reader sees $150K in profits from AMC stock – Franknez.com.
You can view more of these on my Instagram stories under the ‘gains’ highlights.
Bigger media outlets can’t relate to this — we really changed people’s lives.
While media platforms were saying to stay away from AMC stock, I said the short interest data is telling us a story of what may potentially happen and msm is not talking about it.
You saw what happened.
And the truth is, an AMC can still short squeeze in 2023.
Today’s data is just as relevant and just as strong as it was in 2021 when AMC saw big gains.
The only difference today is that we’re in a bear market instead of a bull market, creating a challenge in regard to liquidity and investor sentiment.
What is The Likelihood of AMC Squeezing at Any Moment?
Market News: AMC short squeeze update.
AMC Entertainment stock is only one decision away from short squeezing.
And this decision will be made by short sellers.
All AMC needs to squeeze right now this very moment, or tomorrow, or next week, is for short sellers to begin closing their short positions.
If retail investors are able to create enough buying power to move the stock price up, like they did in 2021, then short sellers will be pressured heavily into closing these positions, initiating a short squeeze.
Since AMC’s cost to borrow the stock is so high in 2023, it’s getting harder and harder for short sellers to short the company.
This means retail investors have a bigger advantage now they didn’t have in 2021 when shares rose to $72 per share.
It’s retail investors who are the key to another short squeeze, always have been.
How high will an AMC short squeeze go?
In January of 2021, the stock surged to $20 and in June it surged to $72.
Where will it go in 2023?
You can read more about how big a short squeeze potential may go in a separate article here.
Share this article with the community and leave a comment down below.
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Market News Today – Is Amazon buying AMC Entertainment?
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Market News: Can AMC stock still squeeze? Here’s what the data says.
There are people who don’t believe an AMC short squeeze will happen anymore.
Some will argue it already happened when AMC stock jumped to its all-time high of $72 per share.
And while yes, there were short sellers who were squeezed out in January when shares rose to $22 and again in June, AMC Entertainment continues to be heavily shorted.
In this article, I’m going to go over 5 undeniable signs that point towards the possibility of an AMC short squeeze.
So, whether people want to ridicule shareholders for firmly sticking to their convictions, you can’t argue with these facts.
TRusT mE bRo.
#1. AMC’s short interest is really high
A short squeeze requires a company to be heavily shorted, which AMC is.
These are shares that have been borrowed and not yet returned to the lender.
Hedge funds borrow these shares to short AMC stock.
At some point, these shares eventually have to be returned whether short sellers simply return them without necessarily selling them in the market, or through a ‘buy-back’ when closing their short positions.
Small spikes in AMC’s share price in correspondence with a drop in short interest suggests some short closing.
We’ve seen this on very high-volume trading days.
Now imagine all of these shares getting returned to the lender from shorts closing positions.
That’s a lot of buying power getting injected into the stock, forcing shares to spike.
Also known as a short squeeze.
#3.The cost to borrow AMC is higher than ever
The cost to borrow is the annual fee hedge funds are paying to borrow shares to short the company stock.
Hedge funds are currently paying more than $30 million monthly in fees alone.
This lucrative fee alone could incentivize short sellers to ditch this play and close their positions.
#4. AMC Entertainment has the community to trigger big buying pressure
This is one of the biggest catalysts for an AMC short squeeze.
Why?
Because volume is what drove share prices up during the Wall Street Bets movement in GameStop, AMC, and other heavily shorted stocks at the time.
DFV knew that buying pressure is what would trigger spikes in GameStop, causing short sellers to run for the hills.
AMC shareholders replicated it in 2021, sending shares from $6 per share to $72 per share by literally buying every dip.
Yeah, it was wild -but it worked.
And shareholders haven’t left, they are still holding in 2023.
#5. The company isn’t going bankrupt
Is AMC a short squeeze play? Can AMC still squeeze?
The short thesis made sense during the height of the pandemic when movie theatres were forced to close their doors to the public.
CEO Adam Aron said AMC Entertainment went from one day making millions per day to income suddenly halting due to the lockdowns.
But AMC Entertainment is no longer going bankrupt.
The company has improved and restructured its debt every quarter since 2021 and has beat earnings expectations ever since.
While the company does carry debt, Adam Aron has proved to be a master at raising cash from thin air.
Some of his efforts have included branded merchandise, the introduction of its equity APE, and through partnerships in the entertainment industry which Disney and Netflix.
The company is expected to launch a new credit card this year and put AMC branded popcorn in retail stores.
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 $5 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.
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.
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?
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.
We have been hearing this for 2 years. The corruption is too great. Who benefits from the fines being paid…