AMC Entertainment (NYSE:AMC) is appearing a little flustered today. A short call is sending the stock tumbling slightly, and calling into question the fundamental value of the theater chain. However, the Ape Army — those who passionately and dramatically vouch for AMC stock — are taking to the internet to both bash institutional investors and to rally behind shares. #AMCFireworks is trending as a result of this concentrated effort.
Iceberg Research is the cause for alarm among the AMC community today with its short call. The institution, which prides itself on unveiling financial fraud, announced via Twitter that it was short on AMC. Its post, short and sweet, came with few details, simply saying “the fundamentals are obvious.”
We are short $AMC. Fundamentals are obvious. After one month of trading sideways and lots of money lost in call options, the pump seems increasingly shaky.
— Iceberg Research (@IcebergResear) July 2, 2021
The tweet led to some sliding in AMC stock today. As of right now, the stock is down 9%.
#AMCFireworks Trends to Rally Apes Around AMC
The resulting firestorm of tweets that Iceberg found itself under has been massive. Iceberg tried to prepare itself by limiting replies to its tweet, but of course, you can’t prevent the Apes from creating a new trending hashtag.
#AMCFireworks has been used in thousands of tweets so far today calling out the institution and other hedge funds that are short on AMC. Many users are rallying around the stock too, saying that they are using the price dip to average down their positions in AMC stock. Of course, there’s also some good old fashioned memes going down as well, like this reply to Iceberg’s tweet:
🦍 and 🧊, and it's not even their natural habitat pic.twitter.com/BCfffOOUHS
— Breakout Point (@BreakoutPoint) July 2, 2021
While the increasing interest in AMC is certainly showing on Twitter, things are a little different on the actual market. Investors are trying to rally each other to buy more stock. Many are claiming that they’re going in at a discount. However, trading volume is down. As of press time, 60 million shares have traded against the daily average of 157 million.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
