AMC stock is going up and continues to leave hedge funds and publishers such as Yahoo Finance, The Fool, and other sources baffled.
Although hedge fund partners are sticking together to mislead the publics opinion when investing in AMC (and other “meme stocks”), we’re going to let you know why this particular stock is going up.
Please keep in mind that I am not a licensed financial advisor. All the information you are about to read is based on expert sources and will be presented in a manor that informs you why AMC stock is going up.
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Volatility is normal in the stock market
We’ve seen a lot of volatility in the market recently. If you’re a new investor chances are you might have been scared off to sell and then noticed the stock slightly go up again in the green tier.
Don’t feel bad, volatility in the stock market is normal. This doesn’t just apply to AMC stock. But if you haven’t sold, kudos to you. #diamondhands.
So, what’s causing the stock to go back up? Well, there are numerous reasons why AMC is back in the green tier. Keep reading to find out whether this stock might be a good pick for you.
Reasons why AMC stock is going up
- Large institutions such as Wells Fargo, Vanguard, BMO Harris, Charles Schwab, Fidelity, & BlackRock are buying the stock right now (via. CNN Business)
- AMC CEO Adam Aron, announced bankruptcy is officially “off the table” and have raised $2.2 billion in cash this new year.
- Because AMC is currently the most shorted stock (via. MarketWatch), the stock price has gone up and will continue to go up as long as retail investors keep buying the stock. *Unfortunately MarketWatch has removed AMC from their list. Retail investors suspect foul play from this hedge fund partner.
- AMC is currently the most held stock surpassing Apple (AAPL) and Tesla (TSLA) – via Nasdaq.
- Godzilla vs. Kong secures $9.6 million in ticket sales on it’s opening night! Keep reading below for the numbers on NEW titles increasing AMC Entertainment’s revenue.
- SEC is starting to crackdown on short sellers.
AMC Entertainment is no longer on the brink of bankruptcy
There’s actually a lot of positive things going on for AMC Entertainment despite what The Fool, InvestorPlace and other shill news might try to convince you of.
The sentiment behind AMC stock keeps getting bigger and bigger and bigger by the day. This is primarily because people are smarter than these hedge funds think. Ultimately, the data speaks for itself.
Now, Adam Aron who is the President and CEO of AMC Entertainment has done an outstanding job with the media. In this video we can hear his optimism for the movie theater chain before AMC theaters began to reopen.
As of April 2021 all AMC movie theaters are now open with many even selling out.
If you’re familiar with Trey’s Trades you’ve more than likely seen his interview with Adam. I wrote a piece on this to highlight key moments of the interview.
You can check it out here.
AMC Q1 2021 Earnings
AMC just announced their Q1 earnings for 2021. Things are looking particularly bullish and optimistic to say the very least.
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. And we still have to go through Q2, Q3, and Q4!
If you missed the conference you can check it out from Matt Kohrs imbedded here for your viewing pleasure.
AMC Q2 Earnings Call
I published an entire article on Q2 earnings call so be sure to read it here! AMC doubled their earnings and have a ton of exciting new things coming to movie theaters.
Key highlights include:
- AMC accepting Bitcoin by the end of the year
- Open to partnering up with GameStop!
- Looking into licensing rights to show concerts and sports events on the big screen
AMC Entertainment has a great vision when it comes to innovation. I’m excited to see our movie theaters evolve to provide an even greater theatrical experience.
Fundamentals are also causing AMC stock to go up
AMC Entertainment as a company has a lot of partners and friends they’ve gained throughout the 100 years they’ve been in business.
They’ve been able to raise money to pay off debt and focus on ways to welcome people back to the movie theaters safely.
Revenue is a very positive factor playing into the fundamentals of AMC’s stock price action. AMC Entertainment is set to release a ton of awesome titles this year which has people excited for that movie theater experience.
AMC’s CEO is one great leader
With this being said, Adam Aron, CEO and President of AMC Entertainment is not backing down. Adam has talked about his experience saving Norwegian Cruise Line and how he intends to to keep AMC alive for as long as he lives to run the company.
If you haven’t seen his interview with Trey’s Trades you can watch the video embedded here for a more in depth perspective of what AMC Entertainment means to him.
Why are large institutions buying AMC stock?
Speculation would point out AMC is possibly a good investment, contrary to what Yahoo Finance, The Fool, and other resources are leading the public to believe, right?
It is important to note that these institutions are purchasing millions in AMC stock. Just a side note here: if AMC isn’t a good investment like some sources are pumping out, then why are large institutions buying while the stock is low in price? Hmm..
My educated guess? Large institutions aren’t going to be wanting to miss out on upcoming gains from a short squeeze.
Aside from a short squeeze however, AMC Entertainment seems to be a good buy even as a long-term stock. Adam Aron, CEO and President of AMC has shared his optimistic views towards the direction of his company.
AMC is a good buy with or without a short squeeze.
What is a short squeeze?
A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money. This in turn makes the retail investor (you and I) a LOT of money.
This notion of an upcoming short squeeze is drawing in a lot of attention. This is why we’re seeing AMC stock go up as well. Its purchase share volume is going up.
And where there’s attention, there’s money to be made.
Volume is important for an AMC short squeeze
As more and more retail investors get in on AMC and continue to buy and hold, we’re going to keep experiencing the stock price rise.
Because volume is such an important factor, retail investors and institutions will need to not only buy the dips but the gains as well.
By buying the gains in increments, the market processes this as a demand in the stock; further driving up the share price.
The main reason why AMC stock will keep going up
AMC is currently the most shorted stock in the market.
Short-sellers such as Melvin Capital bet on the businesses like AMC to lose. These are the folk that don’t care about workers losing their jobs, or about the companies success. This hits home to most retail investors which means convictions towards AMC stock is strong.
The way these short-sellers make money is quite simple. They short the stock. However, they’re not making any money right now. In face, they’re upside down by billions of dollars.
Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at a higher cost and sell the stock low, profiting the difference and driving the share price to the ground.
Fortunately, retail investors like the stock and are against shorting it. This is why AMC continues to go up. Retail investors have all the time in the world to see this short squeeze through. Shorts however, are paying the price every day.
And if you’re wondering, yes this is exactly what occurred with GameStop. Except AMC might just be the MOASS (mother of all short squeezes).
Melvin Capital suffered 49% loss 1st quarter
This is huge for retail investors. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock for quite some time now.
Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.
The importance of this is very significant. AMC is not a dead cat. Hedge funds continue to short the stock in hopes that they can reverse what’s been done. Unfortunately for them it’s only a matter of time before shorts are squeezed out of their positions due to the increase in short borrow fee and utilization of the stock.
AMC Entertainment has been heavily short laddered in the recent weeks. However, the stock seems to continuously correct itself which is why we’re seeing AMC go up again.
For some reason AMC does not like single digit numbers. This stock is going to continue to test high levels of support as fundamentals push the stock in an upwards trend. Fundamentals such as earnings will play a major role in this organic push up.
r/wallstreetbets like AMC stock
The people, along with r/wallstreetbets do not want the movie theaters closed. They are purchasing AMC at the dip and holding. This is where the terms diamond hands comes from.
According to Robinhood, AMC is the most held stock beating both Apple (AAPL) and Tesla (TSLA)! Source: via Nasdaq.
This means AMC shareholders will eventually have leverage over the stock from short-sellers as the price goes up.
As long as retail investors continue to hold, we’ll begin to see a supply and demand situation.
Short-sellers will eventually have to buy from retail investors to cover their spots, inevitably driving AMC share price higher.
Positive AMC Theater news!
AMC movie theaters across the entire country are selling out! New releases are serving the movie theater industry very well.
Godzilla vs. Kong secures $9.6 million in ticket sales
Warner Bros. said Thursday that “Godzilla vs. Kong” secured $9.6 million in ticket sales on its opening night. This has been a record debut for the pandemic. As of April 26th it has done over $400 million global!
Leave me a comment below if you watched the film. I personally loved everything about it.
Mortal Kombat & Demon Slayer outperform earnings
Mortal Kombat brought in 23.3 million its opening weekend. Critics expected Mortal Kombat to reach no more than 15 million. A huge victory for the cinema industry! Not only that but Demon Slayer drew in another whopping 19.5 million its opening weekend.
Mortal Kombat reps the biggest R-rated opening to-date during the pandemic. The beautiful thing is that we have other amazing titles coming to the movies that can continue to scale beyond these numbers.
The top 10 locations for Mortal Kombat were:
1. AMC Burbank Los Angeles, 2. Santikos Palladium San Antonio, 3. Cinemark Tinseltown El Paso, 4. Santikos Casa Blanca San Antonio, 5. AMC Orange Los Angeles, 6. Cinemark Pharr Town Center (Texas), 7. AMC Empire New York, 8. Cinemark Century 16 Corpus Christi, 9. AMC Gulf Pointe Houston, and 10. AMC Southlake Pavilion Atlanta.
Source, via. Deadline.
I have not watched Demon Slayer yet but Mortal Kombat was a fun film to watch. I grew up on the video games (shoutout to GameStop) and the older films so seeing this today made my year. If you have not gone out to your local AMC theater I recommend you do.
A Quiet Place Part II: $57 Million Pandemic Record
A Quiet Place Part 2 debuted in theaters on Friday May 28 and broke pandemic records in the cinema industry.
Paramount’s A Quiet Place Part 2 topped Godzilla vs. Kong and Mortal Kombat combined on their opening night reaching $57 million over the Memorial Day Weekend. A huge congrats to the industry and AMC Entertainment.
As more Americans continue to get vaccinated, health concerns ease. AMC Entertainment is seeing a critical mass effect as the public feels safer. I’m personally happy for the century old company and its shareholders invested in the stock.
The Conjuring Earns $11.5 Million Opening Weekend in the U.S.
The Conjuring: The Devil Made Me Do It earned $11.5 million its opening weekend and grossing 57.1 million worldwide. Congrats to James Wan and the movie theater industry. The Conjuring films are currently the top grossing horror franchise of all time with $1.9 billion at the global box office.
Wall Street analyst upgrades AMC Theatres
Wall street analyst says, ‘Godzilla vs. Kong’ “Destroys lingering concerns around theatrical window importance and demonstrates a solid path to resurgence”, via. Hollywood Reporter.
Eric Wold goes on to say, “Consumers want to leave the house and return to the theater.”
There seems to be a massiveness of positivity going around for the theater industry, especially AMC being the leader. As AMC continues to increase their sales revenue with hit titles, you can expect AMC’s stock price to continue surging. Massive victory for the AMC theaters!
Upcoming movie news and revenue will be updated here so be sure to follow me on Twitter to know when the post has been updated.
Is it too late to get in on AMC stock?
In short, no. With the price of AMC stock being affordable to majority of the public, it’s a steal right now. Especially considering it has set a new floor in the low $30 range and has touched $50 per share twice now. Once in June and again in September.
The ‘ape’ community plans on taking this stock above $100 fundamentally through buying pressure before squeezing shorts from their positions.
I strongly believe AMC will do great post pandemic, and apparently so do other institutions (with or without a short squeeze).
Read Full Piece: Is it too late to get in on AMC stock?
Are you holding AMC Stock? Let me know in the comments section below!
Where can I learn more about AMC’s short squeeze?
Trey’s Trades is an analyst who trades in the market and provides outstanding material on his YouTube channel. If you haven’t checked out Trey’s Trades make sure to do so, you’ll be happy you found this channel.
Another great analyst on YouTube is Roensch Capital. They provide more detailed analysis on the stock if you’re into deep chart digging. While Trey is more energetic and entertaining to watch, Roensch Capital is a little more serious and dives in straight to the research.
These are two channels I particularly enjoy which is why I’m sharing them with you today. My mission is to provide you with valuable information. While there’s a lot more people covering AMC on YouTube, these two channels are by far the best analysts on the platform in my opinion. If you’ve never heard of them before, make sure you leave them a comment and let them know you found them through FrankNez.
A quick message from Frank Nez
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.
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Are you hodling AMC? Leave a comment below what a short squeeze would mean for you or your loved ones.