Tag: AMC Short Squeeze (Page 2 of 22)

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

January 16, 2023 / Frank Nez / 2 Comments

AMC cost to borrow — Stock Market News: AMC Cost to Borrow Rises.

AMC’s short borrow fee has risen to 103.30%.

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.

However, share prices have broken below these levels going into the new year.

Here’s is the latest AMC news and updates.

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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 finds itself trading above $7 per share having retested $8.32 in the past two week.

AMC’s short interest is already over 22% according to Fintel, the same 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 last year when it almost went up to those levels.

But with the extremely high short borrow fee rate, shareholders are preparing 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 earlier this year.

According to Stonk-O-Tracker, hedge funds are currently facing a 103.30% short borrow fee rate to short AMC.

Also Read: How to Buy AMC Stock (2023 Guide)

It’s Getting Riskier to Short AMC

will AMC squeeze soon? — Will AMC squeeze soon?

Experts are claiming that a recession could extend market volatility until around fall of 2023.

As the markets begin to hit the bottom, it poses greater risk to investors going short on the market.

At some point, the market has to come back up.

Many may face unprecedented losses hoping the markets will keep dropping when in fact we may experience a bounce.

Bull markets also tend to last a lot longer than bear markets which means all of this draw-down has only been temporary.

But I’m curious to know your thoughts on this.

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

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Where is AMC Entertainment Stock Headed Next Week?

January 15, 2023 / Frank Nez / 4 Comments

will AMC stock go up next week? — Market News and Updates: Will AMC stock go up next week?

AMC Entertainment stock closed the trading week up more than +30%.

The company stock seems to have bottomed out around $4-$5 key levels.

Fintel is currently reporting AMC’s short interest at 22.02%, which means short sellers continue to short the movie theatre chain.

More than half of AMC’s orders are being moved to dark pools, suppressing true retail demand.

However, the movie theatre stock is currently up +28.75% this year-to-date.

Higher trading volume days has caused shares to rise despite off exchange trading.

Where is AMC Entertainment stock headed next week?

Here are some high probabilities and scenarios.

AMC Stock Bounces from Key Support Levels

AMC Entertainment stock declined more than -70% last year, as most of the market did.

The stock showed major support around the $6 level before getting crushed below $4 towards the end 2022.

Share prices have retested $4 and $5 indicating a clear bounce and bottom for the movie theatre stock.

Volume has risen despite ongoing shorting in the company.

AMC is currently up more than +28.75% in only the first two weeks of the new year.

New investors who purchased the stock in January are currently up this year, but long-term shareholders continue to hold unrealized losses with few breaking even and even fewer still in profit at current levels.

AMC Entertainment, along with GameStop, Mullen Automotive, Meta Materials, and many others, have been targets for big short sellers.

This part of the equation alone makes these companies short squeeze plays.

Will AMC stock go up next week?

Here are a few predictions based on current technical analysis.

Also Read: Why is MULN Stock Going Down?

Will AMC Stock Go Up Next Week?

AMC Entertainment stock will need to break above the $5.13 level to continue its current uptrend.

A break above $5.13 has the potential to take AMC’s share price up to $5.34, then to $5.55.

We are seeing resistance at this level after hours.

Will AMC Stock go up next week? AMC technical analysis Webull.
Where is AMC headed next week?

A selloff or weak buying pressure at the start of Tuesday’s trading day may take AMC’s share price down to retest $5 and possibly even $4.90.

The stock may go as low as $4.77 if buyers don’t step in.

Does Volume Matter?

Momentum will be the catalyst for AMC, despite the large volume of off exchange trading.

Example:

Since approximately 50% of retail’s trades are happening outside of the lit exchange, it means that out of 100 trades, 50 of them are lit.

An increase of 1,000 trades means now 500 trades are lit.

100,000 trades means 50,000 trades are now lit, compared to a low volume buying day of just 100 trades with 50 being lit.

And so on.

Buying pressure matters.

This is why retail investors have always been the biggest catalyst for a short squeeze.

Will the Short Thesis Eventually Change?

The rise of the movie theatre industry is here.

Recent developments have the potential to change the short thesis and enable short sellers to go long instead; closing their short positions.

Changing fundamentals, alliances, and opinions about the movie theatre industry by big players will have a big impact on where AMC’s share price goes in the near- and long-term future.

We want to see AMC’s market cap grow, debt come down, revenue increase, and more money going into the development of new movie titles.

Partnerships and collaborations will demonstrate how the movie theatre industry is a necessary part of the entertainment industry and key to bigger profits in the future, yes, even for online streaming giants.

Would you agree or disagree?

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

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Robinhood and Citadel Colluded Night Before Trading Restrictions

January 15, 2023 / Frank Nez / 35 Comments

The U.S. House Committee on Financial Services just published a press release stating Robinhood and Citadel Securities engaged in ‘blunt’ negotiations before the trading of ‘meme stocks’ occurred.

The press release states that talks regarding lowering PFOF (payment for order flow) rates happened just a night before trading restrictions.

Robinhood and Citadel GameStopped Report — GameStopped Report Notes

The “GameStopped” report issued by the U.S. House Committee on Financial Services greatly details how the NSCC saved Robinhood from defaulting due to failing to meet collateral obligations.

This article is going to highlight key points relating to the ‘meme stock’ halts that occurred in late January of 2021.

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GameStopped Report – U.S. House Committee on Financial Services

The GameStopped report highlights Robinhood’s lack of liquidity, conversations between Citadel and Robinhood, and the process leading to the halting of ‘meme stocks’ such as AMC and GameStop.

On January 28th, 2021, Robinhood routed orders to six market makers for equities: Citadel Securities, G1 Execution Services, Morgan Stanley, Two Sigma Securities, Virtu, and Wolverine.

Citadel, Morgan Stanley, and Wolverine are short on AMC to this day.

The conversations between Robinhood and Citadel were tense as the two negotiated the price of PFOF rebate rates and price caps for AMC and GameStop.

Furthermore, Robinhood received a massive waiver of its deposit requirement from the DTCC.

And according to the report, without this waiver, Robinhood would have defaulted on its regulatory collateral obligations.

NSCC officials say the waiver was necessary to avoid systemic risk to the market.

They explained that the extraordinary spike in ‘meme stocks’ contributed to increased clearing fund requirements for several firms.

Trading Restrictions Chart - GameStopped — Trading Restrictions Chart – GameStopped

Brokers halted the buying of AMC, GameStop, and other tickers when short sellers began to close their short positions, causing share prices to skyrocket.

The halting occurred due to a lack of liquidity where certain brokers were unable to cover the minimum collateral requirements.

The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

Global Head of Operations at Citadel Has a Board Seat at DTCC

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

Citadel and Melvin Capital who shut down last year, lost billions during the event.

Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.

Had the DTCC not stepped in, the hedge fund would have closed that same year.

Retail Feels Cheated

GameStop - GameStopped — Robinhood and Citadel colluded prior to restrictions

Retail investors feel they were robbed when brokers took away the ‘buy’ button by restricting trading in AMC, GameStop, and other ‘meme stocks’.

The DTCC jumped in and saved Robinhood from defaulting, cut Citadel’s losses short, and prevented retail investors bets from reaching maximum potential.

No one has been held accountable for these actions primarily because the system is justifying the actions as saving the market from total collapse.

But the system stole from retail investors to save institutional investors.

Regulators intervened to save institutions while they capped retail investor gains.

Still, hedge funds lost billions of dollars during the process.

GameStop broke Melvin Capital.

The hedge fund was not able to recover from its massive losses and has now shut down.

But Citadel nor Robinhood have faced any severe consequences that money can’t buy them out from.

Retail investors are now looking at our government and regulators as complicit to fraud and market manipulation.

You can view the full detailed report here.

What are your thoughts on the incidents that occurred during this time?

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This is What’s Stopping AMC From Squeezing Today

January 15, 2023 / Frank Nez / 11 Comments

why hasn't AMC squeezed yet? — AMC Theatres: Why hasn’t AMC squeezed yet?

When AMC and GameStop surged in share price back in January of 2021, retail investors on Reddit weren’t worried about dark pools or market manipulation.

They knew that in numbers they could increase the market capitalization, and in turn, increase the share price and collect big profits.

My favorite part of Reddit was seeing all the incredible gain porn.

If you’ve been part of the ape community since the beginning, you know exactly what I’m talking about.

Seeing investor’s gains on Reddit was both desirable and exciting, I mean who wouldn’t want a piece of the action?

So, did market makers and hedge funds all of a sudden decide to start manipulating the stocks after January?

Not quite.

So, what caused AMC to skyrocket in 2021, and why hasn’t it skyrocketed again since?

Here’s what’s stopping AMC from squeezing today.

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Dark pools and off exchange trading?

AMC dark pools — AMC Dark Pools | AMC off exchange trading

Are dark pools and off exchange trading the reason why AMC has not squeeze yet?

Not quite.

See, dark pools and off exchange trading have unfortunately been unfair suppression retail investors have no control over.

These loopholes did not magically appear after January’s runups; they’ve always been there.

While majority of retail investor’s orders are not processed through the lit exchange, high volume has always had a positive effect for investors going long.

As a collective, the small percentage that is processed through the lit exchange accumulates to create the momentum necessary to drive prices upward.

And Redditors on r/wallstreetbets knew this.

All they needed to know was that these stocks were heavily shorted in order to create a short squeeze from fueled buying momentum.

AMC gained attention in January when it surged from $2 per share to $22 per share.

But we noticed many short sellers were still hanging around, so we advised to the public of the possibility at hand.

Months later AMC surged to $72 per share and it was all due to the massive crowd of retail investors who purchased the stock.

AMC was having 500,000,000 to 900,000,000 volume days.

Also Read: Big Reddit Stocks Worth Putting on Your Watchlist This Year

Why Hasn’t AMC Squeezed Yet?

Speaking of volume, AMC’s current average volume today is 26.5 million.

Recently, AMC’s trading volume has surged by twice its average volume.

Today’s economic downturn has made it difficult for retail investors across the entire market to fork out money to buy stock.

The lack of liquidity then triggers financial institutions to further sell assets for capital – which in turn drives stocks lower.

Why hasn’t AMC squeezed yet?

What’s stopping AMC from squeezing today is the lack of buying pressure from retail investors as a unit.

By that I mean BIG buying pressure, not the buying pressure we’re seeing today.

Yes, of course shareholders continue to buy the stock today.

The difference is MORE retail investors were buying AMC stock in 2021.

But this doesn’t mean the short squeeze is over, far from it.

It just means market conditions have to change from bearish territory to bullish territory.

In fact, out of nearly 4,000 market participants, 93% said they were still planning to hold AMC shares in 2023.

Will AMC Stock Squeeze in 2023?

From $2-$22, From $14-$72, From $5 to What?

AMC Stock update — Why isn’t AMC squeezing? Will AMC squeeze? AMC stock update + more.

Retail investors took AMC from $2 to $22 together.

As a unit, they also took the stock price from $14 to $72 per share.

So, what’s next?

Will retail investors decide to take AMC from $5 per share to the next level?

Time will certainly tell.

At the moment, it seems AMC has bottomed out around $4-$5 per share.

And the stock continues to be a trending topic amongst many social media outlets.

One thing is certain, retail investors aren’t going anywhere anytime soon.

Latest AMC Stock News and Updates

The rise of the movie theatre industry is here.

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.

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.

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Former Branch Chief Disappointed by SEC Meme Stock Video

January 15, 2023 / Frank Nez / 10 Comments

The SEC meme stock video is circulating all over social media due to its surprisingly and unprofessional attack on retail investors.

The agency was created in the 30s after the Great Crash to prevent fraud and protect retail investors from predatorial practices conducted by Wall Street.

But something happened along the way – the branch has proved to take a stance with congress in tailoring policies for financial institutions.

Who is going to protect retail investors from the corrupt?

Former SEC Branch Chief expresses her thoughts on the propaganda published by the SEC.

Let’s discuss it.

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SEC publishes Meme Stock Video

If you haven’t watched the SEC meme stock video, it’s embedded below.

SEC Meme Stock Video

The SEC published the video on their official YouTube channel where they restricted public commenting.

Former SEC Branch Chief Lisa Braganca said she was “very disappointed to see the SEC disparage investors in meme stocks as if they must have done it thoughtlessly – especially when the SEC permits most trading to take place in dark pools.”

She then tweeted, “how about a video on dark pools Gary Gensler?”

Lisa Braganca is an activist who fights for market transparency.

She’s talked on Matt Kohrs’ channel before and has done an AMA on Reddit’s r/Superstonk answering questions about self-regulatory regulations, SEC regulation, and SEC enforcement.

Gary Gensler admitted in a Bloomberg exclusive 90%-95% of retail orders don’t go through the lit exchange but failed to mention a solution to the problem.

In an interview with Jon Stewart, the SEC Chairman fails to deliver a quality and productive discussion on solving the problems in the market.

Jon Stewart described Gary Gensler as a sheriff in town that allows blatant corruption to occur.

For Gary, it’s clear it’s more about keeping the job rather than creating a legacy.

Activism Matters

The SEC’s meme stock video might try to portray retail investors as young and clueless novice investors.

But that’s far from who the retail community is.

Retail investors outsmarted hedge funds, exposed the corruption in the SEC, mainstream media, and are now attacking with this propaganda.

It’s a sign of weakness.

The retail community is made up of a very diversified group of people all fighting for the same cause.

And this is a threat to corporate media and powerful institutions.

Republicans and democrats getting together to fight for market transparency, what!?

But this isn’t just about the left and right getting together to combat corruption, it’s a global movement – and opps (opposers) don’t like this.

Activism matters. #FireGaryGensler https://t.co/STOcOxuOIy
— Frank Nez 🇺🇸 (@FNez_Blogger) June 1, 2022

Trey made a great point when he stated why doesn’t the SEC tackle the problems that created meme stocks in the first place:

PFOF
Off exchange trading
Prime brokers
Arbitrage
Naked shorting
Derivative leverage
Etc.

Activism matters.

Retail investors must continue to raise awareness of these issues despite the propaganda.

SEC Spent $460K on “Investomania Meme Stock” Ad

The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.

A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.

The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.

Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.

“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”

And retail investors continue to hold this one against the agency, even in 2023.

What are your thoughts?

The SEC has ignored retail’s cry for help, and now they’ve made fun of the community with the meme stock video.

Did this unprofessionalism in our government surprise you?

I’d love to learn what you think.

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

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Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

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APE Topped $304.9 Million in FTDs in August

January 13, 2023 / Frank Nez / 18 Comments

Market News: APE failure to deliver surge since inception.

AMC’s Preferred Equity, APE, topped $304.9 million in FTDs last year.

The FTDs are reported for the month of August, per Stocksera.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.

AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.

The alarming amount of APE FTDs further proves this.

Let’s discuss it below.

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Clearing houses attack APE

According to Investopedia, APE FTDs can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

There’s a major conflict of interest when Citadel Clearing LLC transacts orders worldwide.

Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so we can see how utilities play out in the hedge fund’s favor.

It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.

Naked short selling seems to be the most probable cause here as $APE has tumbled despite heavy retail interest.

The large amount of FTDs is manipulative and quite common in stocks such as AMC and GameStop.

Retail investors have taken it to Twitter to express their concerns to SEC Chairman Gary Gensler.

And although activists continue to engage the Chairman, no action has taken place to justify the ongoing market manipulation in APE, AMC, and GameStop.

Others are suggesting protesting outside SEC locations across the country.

Leave your thoughts on APE

There’s a lot of speculation surrounding APE FTDs and APE stock in general.

Are you holding APE?

Leave your thoughts below.

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AMC Warns Short Sellers of Possible APE Short Squeeze

January 13, 2023 / Frank Nez / 17 Comments

AMC has released a report warning shareholders from the risks of buying APE shares as the company gets ready to sell up to 425 million shares.

However, the report also warned short sellers of the possibility of an APE short squeeze.

APE traded below $2 on Friday despite strong shareholder sentiment.

The equity has an average trading volume of 19.8 million but has traded lower in the past week.

As the markets continue to tumble and short sellers double down on their positions, stocks such as AMC and APE also continue to take the heat.

But short sellers could be in for a big surprise.

All it takes is coordinated heavy trading activity to trigger massive price fluctuations, at least according to AMC Entertainment’s statement.

Let’s discuss it.

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AMC Issues Strong Short Squeeze Statement

I’ve touched topic on the warning AMC released for shareholders below as the company prepares to sell up to 425 million APE shares.

“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said an official statement from AMC Entertainment.

However, the company also warns short sellers of a potential APE short squeeze, resulting in severe losses for those betting against the security.

“purchasers of our Class A common stock and AMC Preferred Equity Units could incur substantial losses if there are declines in market prices driven by a return to earlier valuations; to the extent volatility in our Class A common stock and AMC Preferred Equity Units is caused, or may from time to time be caused, as has widely been reported, by a “short squeeze” in which coordinated trading activity causes a spike in the market price of our Class A common stock and AMC Preferred Equity Units as traders with a short position make market purchases to avoid or to mitigate potential losses, investors purchase at inflated prices unrelated to our financial performance or prospects, and may thereafter suffer substantial losses as prices decline.”

In this passage here, AMC is warning both retail investors and short sellers alike of what a short squeeze could muster.

The losses for short sellers could be grand as coordinated trading activity causes a major spike in price.

For retail investors, buying the spike could cause significant losses as the stock enters a cooldown period.

What AMC is accepting though is the possibility of a short squeeze whether it be AMC or APE shares.

What Will Trigger a Short Squeeze?

According to AMC’s statement, a short squeeze is triggered by coordinated trading activity, resulting in share price spikes.

Volume was key in January when AMC surged to $20 per share, it was key when the stock skyrocketed to $72 per share in June, and it will be the key today.

The bear market is pinning stocks, but as the market reverses, it’s very possible we see a surge in trading activity in AMC (and APE) again like we did in 2021.

AMC surged in March when it’s weekly volume had surpassed 100 million.

The stock was halted but shares rose despite the market’s downtrend.

AMC’s current average trading volume is 41.2 million though it has been trading at only half.

Will retail investors be able to trigger AMC or APE to squeeze?

I’d love to hear your thoughts on this.

The Rise of The Movie Theatre Industry Is Here

January 12, 2023 / Frank Nez / 1 Comment

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.

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

Streaming Services Aren’t Enough

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.

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?

January 11, 2023 / Frank Nez / 7 Comments

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?

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.

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?

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.

Is Now the Time to Buy AMC Stock Again?

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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93% of AMC Shareholders Say They’re Holding This Year

January 10, 2023 / Frank Nez / 2 Comments

is AMC stock a buy or a sell? — Stock Market News & Updates: Is AMC stock dead?

In a poll with nearly 4,000 market participants, 93% of AMC shareholders said they will continue to hold AMC shares in 2023.

7% of market participants voted they no longer hold or will not hold the stock throughout the new year.

The high percentage of market participants who voted demonstrates retail investors aren’t ready to throw in the towel.

Mainstream media claims massive selloffs have caused shares to drop but retail isn’t selling.

Stock bashers say AMC stock is dead, but the truth is majority of investors continue to buy and hold the movie theatre stock.

Highlights from the poll show investors are mainly averaging down as AMC stock prices fall.

AMC Entertainment stock has fallen more than -82% in the past year despite strong bullish sentiment from the retail community.

Unfortunately, 60%-95% of market demand is being rerouted to off-exchange markets, suppressing true buying pressure.

SEC Chairman Gary Gensler says he understands retail’s frustrations, but that tackling short selling has its challenges.

Market makers, big banks, and massive hedge funds ultimately decide where the markets are headed based on a variety of statistics such as economics, business fundamentals, and of course biased opinions.

These entities have the power to move the markets based on buy vs sell volume.

During a bear market, institutions tend to liquidate their positions due to foreseeable economic events, such as a recession for example.

In 2021, stocks were reaching all-time highs in what was a strong bull market.

Many institutions were long on the market and ‘buy orders’ dominated selling in the market.

While dark pools and off exchange trading give short sellers an advantage, big enough volume, or liquidity, during a bull market, has the power to drive stock prices up again.

Will AMC stock go up soon?

Unless we begin to see strong short positions closing, it’s unlikely we see any major run soon.

Experts are expecting a recession to hit the U.S. economy sometime during the first quarter which could trigger more selloffs from institutions throughout the year.

Is AMC Still a Short Squeeze Play?

According to Fintel, AMC’s short interest today is 21.05% with 6.46 days to cover; this means AMC shareholders still have the capability to trigger a short squeeze.

AMC’s short interest dropped from 22% to 14% when shares began to rise eventually peaking to its all-time high of $72 per share.

A drop in short interest signifies a percentage of short sellers have closed their positions.

The advantage AMC shareholders have today is that shares are significantly low and more affordable.

Shareholders looking to grow their ‘multiplier’, or number of shares prior to the next bull market may benefit greatly in the long-term.

Some stocks will eventually hit a floor and bounce back to possibly even greater levels.

AMC Stock Price Forecast

Analysts are giving AMC Entertainment stock $5, $10, and $20 price targets between mid 2023 through mid 2024.

However, analysts fail to acknowledge AMC’s high short interest may trigger another short squeeze, especially with such a big group of retail investors still holding the stock.

AMC’s short squeeze potential is a rock left unturned by Wall Street analysts, or at least that’s what they portray.

AMC peaked at $72 per share in June of 2021, what’s to say the stock can’t hit $100+?

The short interest today is about the same as it was prior to its massive +3,000% surge in 2021.

Companies such as AMTD Digital (HKD stock) have proven that 25,000% gains in a matter of weeks is very possible.

HKD stock soared more than $2.5K following its IPO date.

Shares began to experience exponential growth after $13.50 per share.

AMC’s share price today with a 25,000% gain could be worth roughly $985 per share.

Is AMC Stock Dead?

AMC stock isn’t dead, it’s just dormant.

With so much volume being rerouted to off-exchanges, it’s difficult for retail investors to make any real impact in the share price during today’s bear market.

is AMC stock dead? — Are retail investors still holding AMC stock? 93% of AMC shareholders said yes.

AMC’s high short interest also shows us another short squeeze is certainly possible.

And with 93% of market participants saying they continue to hold AMC stock in 2023, it shows retail investors are nowhere near abandoning ship.

While it’s true that many shareholders are holding unrealized losses, many retail investors say they will continue to buy and hold until they squeeze short sellers in the next bull market, no matter how long it takes.

Poll: Are you holding $AMC in 2023? #AMC 🍿
— Frank Nez 🇺🇸 (@FNez_Blogger) January 2, 2023

Also Read: How to Buy AMC Stock (2023 Guide)

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