AMC Stock short interest is currently still near all time highs. Although AMC along with most other stocks in the market are trading much lower from recent highs, the high amount of short interest still calls for the possibility of a massive, short squeeze.
According to Fintel AMC Stock currently has a short interest of around 20-21% which means there are over 100,000,000 shares still outstanding short.
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