AMC price will soar because: 1. AMC is officially off the bankruptcy zone, thanks to the over $2 billion equity and debt capital the company currently has. The capital can last the company for the foreseeable future. Therefore, the risk of bankruptcy makes investors confident. This will likely further drive up stock prices as more investors buy the stock. 2. AMC's recent rise in market value and share price increases have been largely driven by Reddit investors who the company says own over 80% of the company's over 480 million shares outstanding. We can expect the price to keep soaring as Reddit and other social media-based investors keep making the company's stock more and more popular on social media. 3. AMC stock will likely rise to $1 k due to the ongoing short squeeze to force short-sellers such as hedge funds to cover their losses. Short-sellers have already made millions of dollars in losses and as the short squeeze continues, share prices are expected to grow. 4. AMC stock is one of the most shorted stocks at the moment. The fact that the stock is shorted makes it more likely for share prices to keep increasing as short-sellers are forced to abandon their positions and cover losses. 5. AMC theaters are back in business after movie theater closures due to Covid regulations. The company's movie theaters are already selling out all their tickets, thereby attracting investors who see hope for the industry and expect profits to grow as the economy continues to reopen. 6. AMC's CEO Adam Aron is inspiring the Reddit investors to continue supporting the stock and become customers by going to its movie theaters. The CEO has gone ahead to increase his online activities on Twitter to engage the investors and listen to their concerns. The continuous appreciation of the online-based investors by the company's CEO will likely push the stock price higher in the coming days.
- Big companies such as the Vanguard Group are currently buying AMC stock. The fact that big companies are willing to buy rather than sell the stock shows that they believe in a positive future for the company. These big companies encourage other institutional investors to buy the stock, thereby increasing stock prices.
- Recent announcements by the Securities Exchange Commission that it is reviewing short-selling rules to properly protect small investors may also be a factor in contributing to further increases in AMC stock prices. If small investors know that the SEC will establish rules to protect them from the short positions adopted by hedge bets, then more small investors may be inclined to invest in AMC stock effectively increasing share prices.
- Recent battles between small online-based investors such as those on Reddit and large hedge funds who mostly take on short positions (short-sellers) that result in job losses are also driving up and will keep driving up AMC stock. Online-based investors continue to develop a liking for shorted stocks in order to stick it up to big hedge funds. Besides, AMC is currently one of the most held stocks at the moment. This will keep driving up share prices.
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