AMC Stock Surges: Is This The Big Squeeze?
BERNARD ZAMBONIN AND DANIEL MARTINS, 21 July 2021
AMC stock (AMC) – Get Report bulls had a day of relief on Tuesday, as they saw the share price soar about 25% after weeks of painful declines. Following positive developments coming from CEO Adam Aron, momentum quickly shifted to the bullish side.
Could this be the beginning of the MOASS – apes’ long-awaited “mother of all short squeezes”?
Good news from the business
Bullishness on Tuesday may have been triggered by CEO Adam Aron. He announced long-term leases on two of the top five theaters in Los Angeles and added that others are coming soon.
The CEO’s statement supports AMC’s optimism about the reopening of the economy and the expected recovery of the business in 2021.
Apes have been accumulating some losses lately, as AMC stock (AMC) – Get Report moves progressively lower in July. Share price has dropped by almost 20% drop in the last five days alone, possibly suggesting that short sellers remain firmly positioned against the movie theater stock.
Reddit forum discussions and coordinated trades have been rooted in the community’s disdain for so-called “toxic market participants”. These toxic players tend to be hedge funds and a few others on Wall Street who make sizable bearish bets against certain stocks through naked shorting.