The concept of buying a company and having it really hit sky high numbers per share may sound like a pipe dream to the typical investor given the recent spike in stock market volatility, but this was all the case prior to the early-year commencement of the meme stock boom that happened in 2021 and even in 2022.
When ordinary retail investors, known as “Apes,” discovered that hedge funds had shorted AMC stock to a point where a short squeeze was highly likely, AMC Stock soared up about 3,000% in 2021.
AMC Stock soared up about 3,000% in 2021 and even though the AMC Stock has not reached that high since then, there have been several AMC Stock Halts over the past months, which suggest that buying pressure and the possibility of new all-time highs may be imminent.
AMC STOCK SHORT SQUEEZE
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 hit an all-time high of $72 per share which was much higher than the mainstream media or the shorts ever thought it would soar. Is this the highest AMC stock can go? Or could it go much higher?
So, the question remains… Could AMC Stock hit numbers as high as $100K Per share?
HOW HIGH COULD AMC STOCK GO?
Image: Eric Glenn | Credit: Shutterstock
According to “Disnat.com” Stock prices change every day 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”