Retail traders have shown a keen interest in the theatrical exhibition stock AMC Entertainment Holdings, Inc. (AMC) over the past two years due to its potential for a short squeeze. Along with GameStop Corp. (GME) and Bed Bath & Beyond Inc. (BBBY), AMC became popular during the meme stock frenzy in 2021.
A short squeeze happens when a significant, short-term spike in a stock’s price forces short sellers to buy shares to minimize their losses. Buying shares to minimize losses leads to a further spike in the price. Currently, AMC has a short float of 24.6%, which indicates another potential short squeeze. Let’s discuss why.
