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AMC Stock: Hot Topics On The Planet Of The Apes

AMC stock suffered on Monday. Shares have already accumulated losses of 20% in the last 5 days. Wall Street Memes brings some of the main topics of conversation within the Ape community.

Apes have been accumulating some losses lately, as AMC stock  (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report moves progressively lower in July. Share price has dropped by almost 20% drop in the last five days alone, possibly suggesting that short sellers remain firmly positioned against the movie theater stock.

Today, Wall Street Memes presents some of the main topics of discussion among the most fervent apes regarding AMC stock.

(Read more from Wall Street Memes: Like Richard Branson, SPCE Stock Surged And Turned Around)

AMC Short utilization

Well-known trader Trey Collins has pointed out that short interest in AMC continues to grow. According to Ortex, short interest utilization (i.e. the percentage of borrowed shares divided by those available in the lending market) has reached 91%, up from 85% in early July and 78% in early June.

Trey further states that when this ratio approaches 95% to 100%, it is natural for borrowing costs to increase, possibly driving more naked short activity (i.e. shorting shares without borrowing it first). Apes have been particularly vocal about the practice of naked shorting.

(Read more from Wall Street Memes: AMC Stock: Short Sellers' Nightmare)

AI on the apes’ side

At its July rebalance, Qraft AI-Enhanced US Large Cap ETF, a fund that is managed by artificial intelligence, dumped much of its shares of Facebook (FB) and Walmart (WMT). In their place, the ETF has accumulated – you guessed it – AMC stock, among others.

The news brought optimism to the “hodl” gang since the ETF has a track record of success with Tesla shares (TSLA). As some apes have pointed out, even bots seem to have FOMO.

AMC: great attendance over the weekend

According to CEO Adam Aron, AMC set another post-pandemic attendance record on the back of a couple of events over the weekend: UFC’s Poirier vs. McGregor and the Black Widow debut. Over 2.5 million guests in the US and about 3.2 million globally attended the sessions.

AMC's strong performance encouraged the apes. But the good news did not reflect on the company's stock, which dropped 8% on Monday. The company's fundamentals seem to have less relevance to share price action than sentiment and momentum.

There was no shortage of apes claiming to have taken advantage of the good news, coupled with stock price decline, to boost their long positions in AMC.

Twitter speaks

Wall Street Memes has recently asked the apes about the possibility of AMC shares reaching $100,000. Below are the results. Do you agree? Follow Wall Street Memes on Twitter and leave your comment.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)