Get in Now on Tiny $3 ‘Forever Battery’ StockĮarly Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air” It doesn’t matter if you have $500 in savings or $5 million. Stock Prodigy Who Found NIO at $2… Says Buy THIS The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. Predicting a future short squeeze is notoriously difficult, so despite any good news, I would suggest staying away since AMC stock remains significantly down on the year. Once the market digests this truth, the temporary high of the earnings beat will probably wear off. At the end of the day, AMC still lost $337.4 million in the first quarter. My instinct is that this is simply temporary good news that investors probably won’t be able to do much with. So what should investors take from all of this? What to Do with AMC Stock High buy ratio with minimal sellers can cause a short squeeze and several gamma. Funnily enough, it was only a few months ago that GameStop earnings caused AMC stock to move quickly upward. Definitely possible AMC has sooooo many naked shorts that need to be covered. Affecting Other Meme PlaysĪMC’s unexpected earnings beat caused GameStop (NYSE: GME) stock to unexpectedly shoot up more than 10% without any other news. According to the Wall Street Journal, the short interest in AMC stock is only very slightly below that 20% threshold. Otherwise, it is usually necessary for short interest to be above 20% for a short squeeze to be enacted. So, it is clear that AMC should now be on short squeeze watch given that unexpected good news has befallen the company. Short squeezes are typically triggered by unexpected good news that serves to drive a stock price upward, or a gradual buildup of buying pressure that outweighs selling pressure in the market.
In fact, even accounting for the price surge, the stock has sloughed off more than 50% of its value this year. However, it must be noted that despite the upsurge based on the positive news, AMC stock remains down on the year. The company recorded 39.1 million people in attendance during the quarter, an increase from attendance of 6.8 million a year earlier. But AMC surprised everyone by posting a non-GAAP loss of 52 cents on revenues of $785.7 million.Īdditionally, on a year-over-year basis, attendance surged. The company was expected to post a non-GAAP loss of 63 cents per share on revenues of $743 million. ( NYSE: AMC) is well known for its role in the Gamestop short squeeze runup in 2021, where retail investors gathered on Reddit's WallStreetBets to send meme stocks. The ongoing downward slide in growth and meme stocks makes the news especially noteworthy.ħ Undervalued Stocks to Buy Before Investors Catch OnĪMC beat consensus expectations on multiple fronts.
The most important news for AMC is that it surprised the markets positively with its first-quarter earnings beat.