Tag: AMC Short Squeeze 2023

5 Big Signs Pointing to An AMC Short Squeeze

AMC Stock Short Squeeze
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

amc short interest

A short squeeze requires a company to be heavily shorted, which AMC is.

AMC has a high short interest of 23%.

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 185.14 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 217.56%.

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 short squeeze

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 insane -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.

You can read more about AMC’s development’s here.

An AMC short squeeze isn’t as far-fetched as some might think

As you can see, there are no conspiracy theories or “what if’s”.

I’ve been documenting AMC’s short squeeze since 2021, shortly after shares rose to $22 per share and came back down in late January.

I witnessed months of momentum build until shares jumped to $72 per share.

And yes, it can be replicated.

Related: Will AMC Stock Squeeze in 2023?


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Will AMC Stock Squeeze in 2023?

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.

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

Or follow me on TwitterInstagram, Facebook, and LinkedIn for daily posts.


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  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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  • Get drawn at the end of the year for holiday giveaways.

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.

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

Or follow me on Twitter and Instagram for daily posts.

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Yahoo Lists AMC and GameStop in Mark Cuban’s Portfolio

Mark Cuban AMC and GameStop
Market News: Does Mark Cuban own AMC or GameStop shares?

Yahoo Finance just published 10 stocks to buy now tied to Mark Cuban’s portfolio.

AMC and GameStop are two retail favorites listed on Yahoo’s list (below).

Mark Cuban jumped on WallStreetBets to do an AMA last year after the ‘meme stock’ frenzy first occurred in late January of 2021.

“If you can afford to hold the stock, you hold. I don’t own it, but that’s what I would do.

Why? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.

I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.

I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use. Do you stay with RH, who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that won’t cut you off and then go ham on Wall Street.”

Now, although Yahoo Finance listed both AMC and GameStop tied to Mark Cuban’s stock portfolio, he said in the AMA that he does not own them.

He mentioned to CNBC later that his son did trade AMC and Blackberry.

Mark Cuban on the SEC

Mark Cuban on the SEC

Mark Cuban and Elon Musk have been two billionaires that have blatantly spoken out against the SEC.

Since its inception, the SEC has sworn to protect retail investors but has only proven to be complicit to market injustices.

An out of touch Gary Gensler has made it rather clear that keeping his job is more important than actually enforcing the law.

Here’s what Mark Cuban had to say about the SEC:

“The SEC is a mess. I wouldn’t trust them to do the right thing ever. It’s an agency built by and for lawyers to be lawyers and win cases rather than do the right thing

If the SEC gave a shit about ANYONE other than Wall Street you would be able to go there right now and read bright line guidelines about insider trading, shorting, what is a pump and dump, what are the rules for cutting off the purchase of stocks like happened with GME et al

But they won’t. They would rather litigate to regulate, which means they love to sue people in order to create new legal precedents.

All you need to know about the SEC and how badly they want to fuck the little guy is that they have the option of using JUDGES THAT WORK FOR THE SEC when they sue you rather than you have the option to have jury of your peers in front of a judge that is independent. Thats how bad the SEC is. If you want fair markets that doesn’t benefit Wall Street call your local politician and show them this.”

You can view Yahoo Finance’s list here.

Related: AMC’s Short Interest Rises to 21.64%

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AMC’s Short Interest Rises to 21.64%

AMC short interest today
Market News: AMC Short Interest Today | Franknez.com.

AMC’s short interest is rising again.

Last week the movie theatre chain’s short interest was around 17%, according to Fintel.

Now we’re seeing a sharp rise in shorting as the stock begins to move upwards again.

AMC shares are currently up +44% in the past month, with a recent high of $9.15 per share.

Shares went as low as $5.05 but the heavy demand zone around $6 levels were able to create a bounce.

Will AMC share prices continue to rise?

Let’s discuss it.

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The Markets in General Are Bouncing

The SPY has created a triple bottom around the $360 level so far and hasn’t come down since.

First in June, again in September, and last in October.

October is the month when SPY began to bounce from this major level of support.

Around the same time, AMC Entertainment stock was having a bounce from its major level of support around $6.30 per share.

Is it possible the market in general has hit the bottom?

It’s very probable, although it’s fair to mention any official talks of a recession can easily crash the market.

If we do begin to see further continuation, we might enter a short squeeze season where stocks begin to have sudden price surges from shorts closing positions.

Last year, AMC and GameStop gained mainstream attention when retail investors began to buy heavily into these two ‘meme stocks’ despite their high short interest.

Users over at Wall Street Bets identified that with enough buying pressure, they could force short sellers to rush and close their short positions in order to refrain from taking on massive losses.

This buy-back of shares would further fuel the buying pressure already being applied from retail investors; GameStop shot up over $483 per share.

In June of 2021, AMC Entertainment stock surged from $14 per share to $72 per share.

Will History Repeat Itself?

AMC Short Squeeze
Market News: Will AMC squeeze again?

AMC’s short interest was around 21%-22% before short positions began to get closed.

AMC’s current short interest is at 21.64%.

This means that with enough buying pressure, retail investors might just have the chance to recreate the events that occurred last year, possibly even bigger.

But I’m curious to hear your thoughts on AMC’s rising short interest today.

Leave your thoughts below.

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AMC Entertainment Trades +42% in The Past Month

AMC Short Squeeze 2023
Market News: Signs of an AMC short squeeze in 2023 arise.

AMC Entertainment trades higher in the past month as it breaks major support levels it created last year when the stock soared to $72 per share.

The movie theatre chain had a low of $5.05 in the past 30 days but has now begun trading above $8 levels.

AMC was halted on Wednesday after surging past $8 per share at market open and had a high of $9.15 that same day.

But it seems momentum is just getting started for the ‘meme stock’.

What we’re seeing this Friday is a trend upwards with consolidation, a high indication of bullish sentiment.

This healthy trend may suggest that market makers are preparing to make their money going long after shorting the stock since its all-time high.

And with SPY’s bounce in the market, it could feed that confirmation bias.

Will AMC undergo a massive bounce as the market in general begins to trend upwards again?

And is an AMC short squeeze in 2023 possible?

Let’s discuss it.

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The Market is Shifting

Stock Market Bounce

The S&P 500 index has seen better days this year, but the SPY hit a triple bottom around $360 so far and hasn’t come down since.

First in June, again in September, and last in October.

October is the month when SPY began to bounce from this major level of support.

Around the same time, AMC Entertainment stock was having a bounce from its major level of support around $6.30 per share.

I sent out an alert that same month informing the retail community of the buying opportunity.

AMC Entertainment is now up more than 40% since the publication of my ‘buy alert‘ on the blog and newsletter.

Take it from someone who said buy AMC at $6 per share last year before it ultimately surged to $72 per share and crippled Wall Street.

The point I’m making is the market is shifting and it’s very possible we begin to see AMC retrace to higher levels it created last year.

Of course, there are many factors that may break or make this a possibility.

The major one being retail and institutional investors both buying the stock en masse.

Which as we know, usually tends to happen during a bull market.

AMC’s Fundamentals Today will Play a HUGE Role Tomorrow

Institutions were buying AMC stock mainly during the second quarter of 2021 when retail investors sparked confidence towards the upside.

And retail investors haven’t left despite massive shorting in the market.

Based on what we’ve seen in the past, a new all-time high for AMC could very well come to fruition in the next bull market.

The reason behind this observation is that institutions and retail investors were buying AMC Entertainment stock even when the movie theater chain was on its knees.

There was still big suppression from short sellers who did not see any fundamental value in the company.

It’s for this sole reason why more institutions will likely purchase the stock during the next bull run, because AMC has significantly improved fundamentally.

AMC’s fundamentals today are going to play a huge role tomorrow.

It’s just a matter of time before retail investors get to see this play out in real-time.

Related: AMC Entertainment Launches Online Merchandise Store

Will AMC Have a Short Squeeze in 2023?

Will AMC squeeze in 2023? Franknez.com.
Will AMC squeeze in 2023? Franknez.com.

Granted that we enter a bull market in 2023, it’s very possible AMC has a short squeeze due to excessive buying pressure from both institutional and retail investors.

Fintel is currently reporting AMC’s short interest at 21.64%, which means there are plenty of open short positions that may trigger an AMC short squeeze in 2023.

When AMC’s share price skyrocketed to $72 per share, AMC’s short interest dropped from 21% to 14% due to hedge funds buying back their shares.

And with AMC’s increasing borrow fee rate, it only puts more pressure on hedge funds to begin this process.

Related: AMC’s Rising Borrow Fee Rate Spells Trouble for Short Sellers

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