AMC Entertainment has been a popular meme stock for a few years now. In 2020 retail investors found that AMC was a heavily shorted stock by institutional investors and hedge funds, so retail investors began buying and holding the stock themselves. The AMC community rapidly gained traction and has been strong ever since. Retail investors refuse to sell their shares and continue to buy and hold (HODL) because they believe the short squeeze is inevitable and is likely on the horizon.
Currently AMC shares on loan have reached 157.87 million. The shares on loan refer to the amount of shares that have been borrowed but have not yet been returned. For investors their AMC short position equates to current debt that they have, as they need to buy back these shares at some point. Right now, AMC has extremely high short interest —the current shares on loan makeup about 21.88% of short interest. Retail investors know this and will not be scared by mainstream media to sell out of their positions or scared out of buying more AMC shares as the market dips.
There is plenty of reason to believe that the short squeeze is going to happen beyond just the short interest data. As mentioned before, executive order 14302 is soon going into effect in the first week of June — meaning that institutional investors will not be able to use Chinese securities as collateral. The last time this happened, with President Trumps executive order 13959, we saw AMC stock price surge to $72 in June of 2021. AMC apes believe that this may also be a catalyst for AMC to skyrocket again based off of what happened last time.
While mainstream media likes to stay quiet about short interest data regarding shorted stocks like AMC and GME, people like Charles Payne are not afraid to use their social media platforms to boost the AMC community and inform others of the potential that AMC has. Charles Payne has been active on twitter speaking about the potential of AMC to reach $1,000. This is huge for the AMC community, the more people that use their voice and platforms to share information, articles and facts, the sooner the possibility of the short squeeze will b