Stock market volatility has been through the roof for the last few years and 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. Although since then AMC Stock has not seen those high, there have still been multiple AMC Stock Halts which indicate that buying pressure and the chance of new all-time highs could be around the corner.
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 20-22% 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 borrow fee and shares on loan are going at alarming numbers.
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.
HOW HIGH COULD AMC STOCK GO?
According to “Disnat.com” Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
That being said, the principal theory is that the price movement of a stock indicates what investors feel a company is worth. Don’t equate a company’s value with the stock price. The value of a company is its market capitalization, which is the stock price multiplied by the number of shares outstanding. For example, a company that trades at $100 per share and has 1,000,000 shares outstanding has a lesser value than a company that trades at $50 but has 5,000,000 shares outstanding ($100 x 1,000,000 = $100,000,000 while $50 x 5,000,000 = $250,000,000). To further complicate things, the price of a stock doesn’t only reflect a company’s current value–it also reflects the growth that investors expect in the future. Source: “Disnat.com”