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Instead, it has taken a life of its own after having raised its average trading volumes in excess of 100 million shares a day with some days hitting over half a billion shares. Here’s why AMC can’t squeeze like GME and potential opportunistic pullback levels for nimble traders and high-risk tolerant speculators can monitor for.ĪMC is the world’s largest cinema operator but has been completely decoupled with peer stocks like Cinemark (NYSE: CNK) and IMAX (NYSE: IMAX). While GameStop’s recent rebound has created a new template for meme stocks being more than a one-shot wonder, the notion that AMC will short-squeeze as GameStop did in January 2021 is very likely not mechanically feasible. While GameStop continues to bleed and attempts to find a bottom after it’s less than impressive Q1 2021 earnings results, AMC continues to maintain elevated levels of volume despite the monstrous dilution taking place. It also appears that AMC and GameStop have decoupled in the near term as Reddit traders are favoring AMC. The world’s largest cinema operator AMC Entertainment (NYSE: AMC) stock has been on a tear as the resurgence of “meme” stock squeezes continues, but it’s no GameStop (NYSE: GME). 7 Stagflation Stocks to Help Navigate Periods of Low Growth.7 Commodities ETFs to Help Build a Hedge Against Inflation.7 Dividend Stocks That Earn 10% Every Month.7 Dividend Aristocrats to Help You Take the Bite Out of the Bear.10 Recession-Proof Stocks That Will Let You Wait Out the Bear.7 Stocks with the Pricing Power to Push Through High Inflation.7 Blue-Chip Dividend Stocks That Won’t be Impacted by Rising Interest Rates.7 Mid-Cap Stocks That Can be the Perfect Fit at Any Time.7 Stocks to Buy to Outrun Rising Interest Rates.7 Sports Betting Stocks to Buy for Their Long-Term Possibilities.7 Water Stocks to Buy as the World Dries Up.Streaming Music is Driving Live Nation’s Domination.DocuSign Has Important Issues to Address When it Reports Earnings.Chip Gear Maker Entegris Has Potential, But Is It Buyable Now?.Will Royal Caribbean's Broadband Partnership Drive Revenue?.Is Alcoa A Buy After Strong Q2 Results And More Share Buybacks?.Could Nike Stock be Oversold, but Still Overvalued?.Could Snap Stock Rebound As Management Restructures?.The Trader's Guide to Equities Research.
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There could also be interest from old-fashioned bargain hunters, with Cineworld’s shares still well below their pre-pandemic levels. However, despite the numerous short-selling pressures, Cineworld’s woes appear to have attracted the interest of investors aiming to buy up the shares in an effort to squeeze short positions and inflict large losses against the funds betting against the company in a manner similar to fellow cinema chain AMC Entertainment Holdings Inc ( NYSE:AMC) and video game retailer GameStop Corp ( NYSE:GME). This trend was flagged up overnight by Cineworld’s chief executive Mooky Greidinger, who said in an interview with Deadline that the opening US box office for Marvel blockbuster Black Widow last weekend could have been over US$110mln compared to the actual US$80mln figure if the film’s maker Walt Disney Co ( NYSE:DIS) had not simultaneously released the film on the Premier Access segment of its Disney+ streaming platform. The decline appears to have been informed by heavy short-selling pressure, with Cineworld now the UK’s most-shorted stock with around 7.5% of its shares held in short positions by six major investment managers, most of whom will have seen sizeable payoffs from the recent slide.Ĭineworld’s appeal to short sellers is likely down to its massive US$8.3bn debt pile and concerns about how the firm will stay on top of it, as well as fears that any resurgence of the pandemic in its key US and UK markets could force it to close again, cutting off revenues.Īnother cause for concern is the shifting methods of releasing films to consumers that have been accelerated by the pandemic, particularly the releasing of new films on streaming platforms at the same time as they arrive in cinemas. READ: Cineworld shares almost certainly the wrong price, says broker In early afternoon trading, the shares were 12.5% at 64.5p following a torrid week for the company that saw its price drop 26.6% between Monday’s open and Thursday’s close. Cineworld Group PLC ( LON:CINE) shares surged on Friday as the struggling cinema chain saw investors jump into the stock in a bid to squeeze short-sellers.