The real causes suggest that the rallies in AMC stock and other “WSB names” are going to reverse at some point - likely in an equally violent fashion. (Indeed, Redditors are taking credit for forcing hedge fund Melvin Capital into its own capital raise.)īut a short squeeze alone isn’t causing the current spike in AMC stock.
#AMC SQUEEZE PREDICTION MOVIE#
And, as that hashtag suggests, part of the appeal in going after AMC stock is the desire to put it to purportedly predatory hedge funds that are looking to profit off the demise of the movie theater chain.Ĭoordinated buying of the stock is supposed to engineer a “short squeeze,” which will lead to huge losses for funds betting against GME, AMC and other names. Indeed, #SaveAMC is trending on Twitter (NYSE: TWTR). The same group seems to have led a massively engineered squeeze in GameStop (NYSE: GME), and then turned their sights on AMC, another heavily shorted stock. Rather, it appears to be driven by the suddenly famous (or infamous) WallStreetBets forum on Reddit. The release quoted CEO Adam Aron as saying “any talk of an imminent bankruptcy for AMC is completely off the table.”īut it’s not the capital raise that is driving Wednesday morning’s huge rally (on huge volume).
AMC announced on Monday morning that it had raised $917 million in new capital since the middle of December. It gained 66% in three days before a 225% (not a typo) rally in early morning trading Wednesday.
After all, AMC stock has made a massive move over the last few sessions.
0 kommentar(er)
