Retail investor’s favorite 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 and AMC stockholders known as the apes are anxiously waiting for the MOASS or mother of all short squeeze to begin.
WHY WOULD AMC STOCK SQUEEZE IN DECEMBER
Investors are now forward looking into what Q4 earnings will look like, and what could be a positive cash flow quarter for AMC Entertainment. The number of sources of revenue for AMC Ent continue to grow by the day it seems and here are some of the catalyst investors are watching closely.
- Movie theater ticket sales
- Online AMC Merch 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
MARKET CONDITIONS COULD CAUSE A SQUEEZE
HEDGE FUNDS ARE RUNNING OUT OF MONEY
Market conditions have gotten very bad. 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