In this article, we’re going to go over some of the latest developments in AMC, it’s history since redditors took over, and an AMC short squeeze update for the year of 2023.
AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.
Retail investors remain excited about the data that has been collected for years now.
Will we see an AMC short squeeze while we continue to ride today’s bear market?
And if so, how soon?
Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock and its short squeeze update and history.
Lets get started!
How soon will we see an AMC short squeeze?
Retail investors all want to know.
Is it this week?
Will it be next week?
Or, are we looking at a longer game here?
Here’s what we know.
Key Highlights
- AMC closed at $5.46 on March 13th. 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.
Related: These Two Signs Will Tell You a Short Squeeze is Over
AMC Stock News and Highlights
FOX Business reported AMC to have a strong chance of a short squeeze in 2021.
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.
As you keep reading, you’ll find the latest developments and AMC short squeeze updates for 2023.
Here’s some history and backstory on what’s happened with AMC ever since retail investors saved the company from bankruptcy.
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.
Will AMC Stock Squeeze in 2023?
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.
READ: 5 Big Signs Pointing to An AMC Short Squeeze
Is AMC Shorted?
AMC’s current short interest is around 24.85%.
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
You can read Q3 earnings here and Q4 here from 2021.
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
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
Read: How Hedge Funds Manipulate The Stock Market
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.
AMC continues to be heavily shorted through dark pools and other market manipulation tactics.
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 $5.46 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.
Related: Analyst Predicts AMC Free Cash Flow Coming in 2024
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.
Related: 93% of AMC Shareholders Say They’re Holding in 2023
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’.
Read: Codes to see if your phone has been hacked
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.
Read: Big Reddit Stocks Worth Putting on Your Watchlist This Year
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.
Related: How Big Could an AMC Short Squeeze Potential Surge?
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 3/9 AMC’s short borrow fee rate is 102%.
Read: When do shorts have to cover their position? (AMC)
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%.
Related: DTCC B16845-22: Are Margin Calls on The Way?
Latest AMC Short Squeeze Update and News
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Is AMC Entertainment stock about to squeeze this year?
You can read the full article here.
Ken Griffin Thanks Redditors for ‘Meme Stocks’
“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.
Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.
Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?
Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.
A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.
However, the federal court has dismissed the case due to a ‘lack of evidence’.
Research shows Judge Cecilia Altonaga had a close connection to the defendant’s law firm, insinuating a conflict of interest in the case.
Also read: Big Reddit Stocks Worth Putting on Your Watchlist This Year
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What will an AMC short squeeze mean for you?
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