Tag: AMC Squeeze (Page 1 of 7)

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

Daily Market News: AMC stock news, updates + more.
Daily Market News: AMC stock news, updates + more.

AMC Entertainment (NYSE:AMC) stock is up more than +40% this year-to-date.

New developments this year may send share prices rising throughout 2023.

Streaming giants have figured out that the theatrical experience is key to their long-term success.

AMC Entertainment CEO Adam Aron praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

On the other end, CNBC says Netflix left $200 million on the table for not leaving Daniel Craig’s ‘Glass Onion: A Knives Out Mystery’ in theatres longer.

So, what does this say about the Wall Street short thesis that movie theatres are dead?

Here’s the latest AMC Entertainment stock market news.

Online Streaming Might Not Be What Wall Street Hoped For

AMC online streaming news - Netflix falls short.
AMC online streaming news – Netflix falls short.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NASDAQ:NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

What Are Experts Saying?

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.

Related: AMC’s Cost to Borrow Has Hedge Funds Burning $20 Million Per Month

What Does This Mean for Short Sellers?

Daily Market News by FrankNez - Will AMC go up again?
Daily Market News by FrankNez – Will AMC go up again?

For short sellers betting against the movie theatre company, it could mean severe losses if share prices were to skyrocket again.

AMC Entertainment stock is still heavily shorted, currently weighing in at 21.92% short interest (updated daily).

All it takes is for a few short sellers to begin closing their positions for other short sellers to follow suit.

This chain reaction could trigger an AMC short squeeze in 2023.

Amazon insiders told Bloomberg the retail giant plans to invest billions in the movie theatre industry, aiming to release 12-15 movies annually for theatrical release.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

CNBC stated that ‘while a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business.”

Related: Will AMC Stock Keep Rising this Week? (Updates)

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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.

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Former Branch Chief Disappointed by SEC Meme Stock Video

SEC Meme Stock Video
Market News: The SEC attacks retail investors with propaganda

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

wallstreetbets

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.

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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Did AMC Stock Just Bottom Out?

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

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

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

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

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

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

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

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

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

Let’s discuss it.

Why is AMC Stock Going Up?

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

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

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

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

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

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

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

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

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AMC Stock At A Glance

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

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

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

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

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

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

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

Is history about to repeat itself?

The recipe for a short squeeze is certainly there.

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

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

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

Always have a plan.

Related: How to Buy AMC Stock (2023 Guide)

Is Now the Time to Buy AMC Stock Again?

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

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

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

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

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

But I’m curious to know what you think.

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

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

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How Big Could an AMC Short Squeeze Potential Surge?

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

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

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

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

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

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

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

Another community member posted his brand-new Polestar.

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

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

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

Let’s get started.

AMC Stock Price Today

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

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

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

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

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

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

How High is An AMC Short Squeeze Predicted to Go?

amc short squeeze price prediction

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

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

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

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

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

All fascinating without a doubt.

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

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

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

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

What did we find?

Denial. Over and over again.

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

Retail investors were called conspiracy theorists.

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

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

Naked shorting was now officially being discussed on live television.

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

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

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

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

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

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

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

There’s only been denial.

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

AMC all-time high price

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

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

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

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

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

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

Absolutely.

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

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

Some may agree, others will certainly differ.

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

Are Shareholders Still Holding AMC?

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

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

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

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

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

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

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

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

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

So, the sentiment lines up.

Related: How to Buy AMC Stock (2023 Guide)

What is Your Top AMC Stock Price Prediction?

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

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

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

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Webull Increases AMC’s Short Selling Fee Rate to 56.99%

AMC Webull
Market News: AMC’s Short Selling Fee Rate Rises.

The fee rate to short AMC stock on Webull is now 56.99%.

The broker has labeled the movie theatre stock as ‘hard to borrow’.

AMC’s short selling fee rate is quite high compared to much larger cap companies.

For example: Tesla (TSLA), Apple (AAPL), and Amazon (AMZN) all have a short selling fee rate of only 9.49%.

GameStop (GME) shares are also labeled as ‘hard to borrow’ but with a short selling fee rate of only 23.74%, 33.25% less than AMC Entertainment (AMC).

Webull also currently has a 150% maintenance requirement for AMC short sellers.

This means 150% of the value of the short sale is required as the initial margin.

If the value of the position falls below maintenance margin requirements, the short seller will face a margin call and be asked to close the position or increase funds into the margin account.

Here’s the latest AMC Entertainment news.

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#AMCSTRONG

AMC’s share price continues to slide even as the company simultaneously produces results for Wall Street to take a look at.

CEO Adam Aron has been vocal about Wall Street doom prophets and ‘naysayers’ on social media, taking a chance to address them every time the company takes a step forward.

AMC shares rose 4.54% on Wednesday to $5.30 after experiencing a week-low of $4.74 on Monday.

But the AMC community remains resilient.

Despite mainstream media and corporate fear, retail investors aren’t giving up yet.

Shareholders anticipate probabilities of squeezing short sellers again will rise during the next bull market.

When that will be, no one knows.

Though Bank of America’s CEO says he predicts a recession will hit the U.S. economy during the first quarter of 2023 and ease by the third quarter.

If true, the markets might not pick up until the end of 2023 or start of 2024.

For the retail community it’s no longer a question whether if AMC Entertainment will squeeze or not, but rather when.

Recreating a Big Event

AMC All-Time High | Franknez.com.
AMC All-Time High | Franknez.com.

Short sellers are already facing high fees to short the movie theatre chain stock, and regulators are already under fire for allowing dark and off-exchanges to suppress securities in the market.

So, what will recreate big price movements like we witnessed last year?

In my personal opinion, the best time retail investors will want to play offense is when the markets begin to favor long positions.

It’s during bull markets that we see company stock perform extremely well.

Like the events that occurred in January and June of 2021, playing offense during a bull market tends to trigger intense price action.

However, AMC’s short selling fee and maintenance requirements are currently high.

This means retail and institutional investors still have an upper hand, as well as the potential to recreate these events much sooner.

They’ll just need a lot of capital, especially from institutions, to see this come to fruition.

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

Leave a comment down below.


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