The idea of investing into a stock and it actually reaching $100,000 per share might seem like something of a dream to the average investor, but this was all before the start of the meme stock rally early last year.
AMC Stock surged up nearly 3,000% last year when retail investors better known as the “Apes” realized that hedge funds shorted AMC stock to a level where a short squeeze was very possible.
A short Squeeze is defined on Investopedia as: A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradable security. For a short squeeze to occur, the security must have an unusual degree of short sellers holding positions in it. The short squeeze begins when the price jumps higher unexpectedly.
AMC Stock did hit an all-time high of $72 per share last year, which was much higher than the mainstream media or the shorts ever thought it would soar.
So, the question remains… Could AMC Stock hit numbers as high as $100K Per share?
AMC Stock is currently sitting around 33-34% Short interest which is extremely high and once again puts AMC Stock at a high risk for a massive, short squeeze. On top of the high short interest AMC stock has around 181 million shares on loan which is also at an all-time high as of now.
The number of shares on loan clearly show that AMC is at a much higher number of shares on loan than where it was during the run up to $72 last year.
The fact that AMC Shareholders have held onto their shares up until this point proves that they are likely going to hold until AMC stock reaches sky high numbers, or back down to all-time lows. We have data such as on balance Volume to prove such statements.
As shown above, a short squeeze has the potential to send a stock to no theoretical limit, which is exactly why AMC Stock to $100K or more per share is definitely possible.