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AMC Stock along with retail favorite GameStop stock are back in the headlines as of this week. Both names also saw some major price action early in the trading day of Oct 31.
AMC which closed at $6.66 on Halloween day also saw around double the average trading volume that the stock has experience in quite a while.
Should investors be prepared for another massive, short squeeze like we saw in 2021?
HEDGE FUNDS ARE RUNNING OUT OF MONEY
Hedge funds have been notorious for shorting names like AMC and GME stock and they could be facing a situation where they need to close short positions in order to keep their funds afloat. Hedge fund outflows are also something that is bring up concerns across the board. According to Reuters “Investors putted an estimated $26 Billion from Hedge funds during the third quarter according to data provided by HFR.
In addition, the second quarter had a $27.5 billion outflow, marking the first time since the peak of the COVID epidemic which was in 2020 that hedge funds have seen consistent withdrawals from one quarter to the next. Conditions are as bad or even worse in some areas of the markets since what we have seen during the 2020 lockdowns.
This high number of outflows are higher than average and could indicate a more sustained bear market could be ahead for investors
AMC Q3 EARNINGS
AMC Stock the largest theater company in the world, stated they would release its third-quarter results on Tuesday, November 8, 2022, following the market close. This earnings report is coming off a massive quarter of box office earnings and revenue that looks rather healthy coming off the lockdown of the movie theaters.
Q3 EARNINGS BOMBSHELLS
Investors are anxiously awaiting what CEO Adam Aron and the team have to say about the last quarter but more importantly what bullish catalyst could be announced during the earnings call. Here’s a list of topics investors should be ready to hear more about.
- Movie theater ticket sales
- Movie theater concession sales
- movie theater merchandise (Found inside theaters and online)
- Perfectly popcorn company (Found in malls and online)
- HYMC investment (Gold and silver mining stake)
- APE Dividend
- New Merger possibilities
- New acquisition possibilities
- Buyout rumors
SHORT SQUEEZE POTENTIAL
To be honest an AMC Stock short squeeze potential is still completely on the table as of now. If the short sellers decided that it was a good time to close some or all the shorts, we could see intense price action and trading volume which could send AMC stock new highs. The next up and coming trading days are going to be crucial for the short-term future of AMC Stock.