Investors who thought the short-squeeze discussion around embattled cinema chain AMC Entertainment (NYSE:AMC) was over may want to think again. Today, AMC stock is once again in focus for retail investors. The stock is trending on various social media platforms, and investors are getting giddy about this meme stock’s potential.
Today, AMC stock has surged above the $40 level. Today’s move of nearly 7% at the time of writing suggests this is a stock that could be gathering momentum. For those intrigued by this company’s short-squeeze potential, that’s a good thing.
Let’s dive into what’s driving this bullish enthusiasm today.
Retail Investors in AMC Stock Jumping on Short Covering Announcement
Today, a number of reports that short-selling research firm Iceberg Research has officially closed its short position against AMC stock are going viral online. Retail investors looking to squeeze the shorts are chalking this announcement up as a win.
Iceberg Research indicated that it was up 30% on its short position. That means AMC had declined 30% from levels the short seller sold AMC stock short. Additionally, the short seller indicated it remains open to starting a new short position in AMC at some point in the future.
That said, the fact that shorts are beginning to walk away from the AMC trade appears to be bullish for retail investors. If more short sellers follow suit, logically some level of organic buying pressure should provide positive momentum.
One of the key questions investors have had with the AMC saga is whether retail investors can hold on for long enough to induce a squeeze. Today’s news appears to be the evidence many “diamond-handed apes” were hoping to hear.
On the date of publication, Chris MacDonald 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.