What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.
Retail investors are very excited about the data that’s been collected for months now.
Will we see an AMC short squeeze while we continue to ride this bear?
And if so, how soon?
Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock.
Lets get started!
How soon will we see an AMC short squeeze?
Retail investors all want to know.
Is it this week?
Will it be next week?
Or, are we looking at a longer game here?
Here’s what we know.
- AMC closed at $6.80 on February 6th. The stock continues to be heavily shorted. AMC Entertainment is set up for a short squeeze despite its split.
- Shareholders continue to buy and hold the stock.
- AMC’s short interest data shows us the stock has the perfect setup for a short squeeze.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze.
AMC stock news and highlights [2021 Archive]
Coming from a big news platform, it certainly brought sentiment up for most retail investors.
This is the type of news retail investors truly yearned for at the time.
Today, AMC is still currently one of the most shorted stocks in the market.
President and CEO of AMC Entertainment Adam Aron announced AMC would reopen all 13 AMC theaters in New York City on March 5th, 2021.
As of today, all AMC movie theaters are now open across the United States with many selling out.
Check out what Adam Aron had to say (via. Investor Relations AMC)
“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”Adam aron, President and CEO of AMC Entertainment
For those who thought AMC was a dead company, think again.
The company is now generating big revenue since it’s reopening and has beat every quarter since 2021.
Related: How to Buy AMC Stock (2023 Guide)
Melvin Capital closing in June of 2022
This was huge news at the time.
Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.
Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.
The hedge fund was scheduled to close in June of 2022.
Similarly, Anchorage Capital also closed its doors after betting against AMC stock.
Here’s why this matters:
- Hedge funds who try to go against the retail wave will get burned
- This is a huge win for retail investors over ‘smart money’ Wall Street
- Unless shorts close their positions, hedge funds may suffer big consequences again
- Today’s borrow fee rates are higher than they were in 2021 when AMC surged to $72 per share
- An AMC short squeeze might be closer than we think
There are a few things retail investors did in 2021 to trigger massive price action:
- They held their positions during the ups and downs
- Shareholders purchased the dips
- Investors shared information relating to a short squeeze (such as this article, 2021) to raise awareness
- Kept tabs on charts to know when to buy (during drawdowns)
The incredible thing is 93% of market participants said they will still hold AMC stock in 2023 for a short squeeze.
Positive News for AMC Entertainment (Archive 2021)
- AMC Entertainment has raised more than 2.2 billion dollars in cash
- 90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
- Vaccinations and policies are making movie theaters safe
- New movie titles are guaranteed to increase sales revenues
- CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
- AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.
Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock.
That’s primarily because hedge funds are losing millions by the day.
A short squeeze could even put them out of business.
This is why it’s important and always has been for me to spread any positive news surrounding AMC.
I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.
Is AMC Shorted?
AMC’s current short interest is around 22.84%.
As of 1/12, we’re seeing 0 shares have been made available to borrow, via Stonk-O-Tracker.
While shorts might have the capability to short AMC stock, this is only temporary.
The retail community has made big enough ruckus to where regulators are finally investigating naked shorting.
What does this mean for the AMC shareholder?
Expect to see gains after shorts have run out of borrowed shares to use and begin closing short positions.
Not only has bankruptcy been off the table since 2021 (via. Los Angeles Times), but AMC movie theater attendees have increased drastically in 2023.
This in turn has increased revenue and helped AMC Entertainment pay off more debt in the past two years.
AMC Entertainment Quarter Earnings History (2021)
Below are AMC’s quarter earnings for 2021, the year the ape movement began.
AMC’s quarter earnings for 2022 will be updated here and on another blog post once those have been announced later this year.
AMC Q1 earnings for 2021
AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things have been looking particularly bullish and optimistic since that point.
For the retail investor this means the upper hand is yours.
AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022.
If you missed the conference call you can view it here for your viewing pleasure. [ARCHIVE DATA]
AMC Q1 2021 highlights
- The AMC community is recognized
- Q1 earnings are higher than last years 4th quarter
- Expectations for Q2 – Q4 are much higher
- Food and beverage sales are up by 45%
- Sales revenue will continue to rise as new titles are being released
AMC Q2 earnings for 2021
Quarter 2 earnings for AMC were absolutely amazing! I published an entire article on this information you can read all about here.
- Record breaking $2 billion in liquidity
- Increased revenue / tickets & concession
- AMC to accept Bitcoin by the end of the year
- GameStop partnership
- Enhancing the cinema experience with sports and music performance
For the latest AMC earnings reports, search them using the search bar on the blog.
When will an AMC short squeeze happen?
It’s really hard to tell.
Experts, analysts, and shareholders can’t identify an exact date and time.
However, the possibility of an AMC short squeeze is certainly possible given that it is still a very heavily shorted stock.
We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen.
Especially now that the SEC has announced some crackdown on shorting.
With Melvin Capital and other hedge funds out of the picture, it’s only a matter of time before others close their positions.
It’s tendie time!
Analyst AMC predictions (2021 Archive)
With that being said, Trey’s Trades predicted a short squeeze in 2021. Trey has been a leader in the AMC community, though he’s recently taken time off from stock content on YouTube.
Data points towards AMC stock reaching $1000+ per share.
See what Trey had to say.
The real question is, how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to close their positions. This means that they will eventually have to buy AMC stock at the current share price.
- If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.
2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.
This play essentially creates a supply and demand scenario between retail investors and short-sellers.
The results? A short squeeze.
Just make sure to take your profits.
The last thing you want is to see your gains turn into losses.
Hedge funds are doing everything they can to prevent a short squeeze
How are they doing this?
- By promoting false information online (we’re certain you’ve seen it)
- Through strategies such as short-ladder attacks in the market
- And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
This is what retail investors can do to fight corruption:
- Share content that presents facts (blog posts, analysis videos, etc.)
- Continue to educate yourself and make investment decisions based on your personal analysis
- Follow your instincts
What Will an AMC Short Qqueeze Look Like?
We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.
In 2023, it seems we’ve already hit the bottom.
This price level can be seen as a buying opportunity for retail investors looking to squeeze shorts out of their positions.
We’re now sitting at $6.80 per share.
An AMC short squeeze will certainly make headlines.
Expect to see various gains prior to any sort of major peak as well as volatility.
Gamma squeeze vs Short squeeze
Don’t confuse gains and momentum with a short squeeze.
Here’s the difference between a gamma squeeze and a short squeeze:
A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.
A short squeeze is vigorous and can spike with no warning.
This is where you see 100% gains in a matter of seconds and minutes.
A short squeeze can even reach 1000% and 10,000% gains.
In 2021, AMC’s first short squeeze rose to nearly 1,000% in January, then to more then 3,000% in June.
Retail investors believe AMC’s next price surge will set a new all-time high from its current of $72 per share.
AMC Short Squeeze Stock Prediction – Can AMC Reach $500K Per Share?
New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.
Gabe from ReviewDork did some math at the time that’s going to leave you with an open mind.
AMC stock price predictions range from $1,000 to $100k+.
But I’m curious to know your thoughts on this.
Leave a comment at the end of the blog post.
Will AMC Reach Peaks Like GameStop?
AMC and GameStop blew Wall Street out of the water in 2021.
Trading volume will speak for itself, and retail investors will just have to wait to find out whether AMC can reach GameStop numbers.
We’ve seen that abnormal gains are naturally part of a short squeeze.
Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.
Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!
I strongly suggest using a reputable broker such as Vanguard or Fidelity oppose to phone apps like Robinhood.
Simply because the broker colluded with market maker Citadel to halt the buying of ‘meme stocks’.
Is It Too Late to Get in On AMC stock?
Absolutely not, at least not yet.
AMC Entertainment is still heavily shorted.
Redditors have touched base on this topic and are determined anything below $100 is a buy, for a short squeeze that is.
Where was AMC trading at before the pandemic?
AMC was actually trading between $30-$35 back in the booming party economy of 16′!
AMC stock started to decline as their debt increased and hedge funds began to heavily short it.
However, AMC Entertainment Holdings, Inc. is in a completely different world today than it was during the pandemic.
What If a Short Squeeze Doesn’t Happen?
If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.
That is, for those whose majority of shares were purchased at today’s current lows.
With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released.
Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share.
If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.
However, a short squeeze not happening is very unlikely as AMC is currently still one of the most heavily shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ.
Majority of the float is also held by retail investors, so the company has a huge support.
Why Hasn’t AMC Squeezed Yet?
AMC hasn’t squeezed yet primarily to two main reasons.
- The stock requires volume to drive the stock price action up
- Shorts need to close their positions
Volume will surge as more and more retail investors (as well as institutions) get in on AMC stock.
Regarding shorts closing, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee.
You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.
AMC short borrow fee
As of 1/3 AMC’s short borrow fee rate is 109.90%.
In 2021, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.
This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.
However, Adam Aron has brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China.
Despite going around the breaking partnership, Wanda cashed out completely two years ago, making retail investors the biggest stakeholder in the company.
Is AMC Ever Going to Squeeze?
All the numbers point towards the right direction for a massive short squeeze.
Shorts and hedge funds continue to lose money every day.
The interest is growing at an alarming rate and AMC’s current utilization is at 100%.
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What will an AMC short squeeze mean for you?
Let us know in the comments section below what an AMC short squeeze would mean for you!
If you’re an AMC shareholder let us know in the comment section below.
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