AMC Stock makes reference to the AMC Entertainment Holdings, Inc. (AMC) company that experienced a massive price increase in recent weeks. The company is offering solutions to clients in the United States and also other countries. Thus AMC stock is also known all over the world and not only regionally.
Due to the short squeeze generated by the WallStreetBets Reddit forum, several investors got interested in AMC stock. Nowadays, it is possible to acquire this stock in a wide range of platforms.
As we mentioned before, AMC is a theatrical exhibition company that is offering services to clients from all over the world. The company has purchased the licenses of popular films and also smaller producers. This also includes independent distributors.
In addition to it, the company has also offered meals, popcorn and also soft drinks, among other things. The company is also working in all the territory of the United States (excluding 6 states) and in 13 European countries.
They have hundreds of theatres and thousands of screens everywhere in the world. This shows the company was one of the largest in terms of the content offered to clients.
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In recent years, and due to the expansion of streaming services, the company has been severely affected. Indeed, AMC stock price has fallen from $32 in 2017 to $2.30 in early January.
The situation experienced by AMC Stock price shows that traditional entertainment companies are facing a macro change in their business. In addition to it, the expansion of the Pandemic has also affected AMC entertainment stock performance.
With lockdowns and restrictions, most countries all over the world blocked the opportunity for clients to continue to enjoy different films on AMC theatres. Furthermore, AMC theaters stock became an indicator of the situation faced by cinemas and similar companies in this sector.
At the end of January, we have also seen how AMC Entertainment stock was short squeezed by traders. The r/WallStreetBets Reddit became a forum to discuss stocks, investments and the market.
Considering this could be considered a relatively falling industry, large investors and hedge funds in Wall Street have been shorting these stocks (Nokia, AMC, GME) profiting from their decline.
WallStreetBets decided to start buying massively the AMC stock and other companies in order to generate a short squeeze. This pushed large shorters to re-purchase the asset that started to grow (pushed higher by retail investors) generating a double bullish event.
AMC stock price skyrocketed to $19,90 from $2 in January. This shows that the retail investors were able to generate a strong movement in the industry. However, it is difficult to do an AMC Stock forecast considering the inefficiency of the market right now.
Hedge Funds and large investors have used their influence and power to reduce their losses and manipulate the market. Thanks to them, Robinhood, one of the largest retail trading applications in the market, blocked the buying option for retail traders using the app.
This created a strong discomfort among retail users that wanted to continue buying the asset. Moreover, it has also been harmful to those users that bought the top and that couldn’t do anything to see their stock move higher.
Moreover, this move by Robinhood and other retail trading applications has only helped large companies reduce their losses. Due to this reason, nowadays, users feel “betrayed” by Robinhood and how the platform forbid AMC theaters stock purchases.
There have been also other stocks that experienced similar situations to AMC. GMO and Nokia were also two stocks that have been massively purchased by retail traders in the last few weeks. This has generated short squeezes of these stocks affecting hedge funds and large Wall Street investors.
In general, retail traders from the r/WallStreetBets subreddit believe that hedge funds are manipulating the market against retail investors. Now that retail investors take control of the markets, hedge funds use their influence in order to stop retail influence in the price of these stocks.
In the future, we might see how retail investors start purchasing other stocks as they have done with the above-mentioned companies. This could also create another short squeeze and affect hedge funds and other large investors in Wall Street. However, there is no information about which could be the next stocks experiencing this price movement in the future.
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