AMC Share Price: Stock tumbles as Iceberg Research reports it owns a short position
- NYSE:AMC fell 4.17% on Friday, during another red day for meme stocks.
- Iceberg Research discloses it now has a short position in AMC.
- With Robinhood set to go public, some are calling an end to meme stocks.
NYSE:AMC continued its descent on Friday, and it's unclear whether or not a hot weekend at the ticket booth can save the stock again. Shares of AMC fell by 4.17% to close the trading session at $51.96 heading into the July 4th weekend. The recent short squeeze is definitely running out of gas after the parabolic rise of AMC’s price has sent the stock higher than what the underlying fundamentals of the company can reasonably support.
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One investing firm that will definitely agree with that statement is Iceberg Research, a notorious short-seller that disclosed on Friday that it now held a short position in AMC. While it is risky business disclosing short positions in a meme stock these days, Iceberg’s lead investor Arnaud Vagner believes that the reliance on call options in hopes of a gamma squeeze is not sustainable, stating that the volume of call options is steadily declining. Vagner also called out AMC’s fundamentals, citing that the company still has hurdles in terms of the movie industry ever returning to pre-pandemic levels.
AMC stock forecast
With the announcement of retail trading platform Robinhood going public in the near future, many in the industry are calling for an end to the meme stock phenomenon. According to some analysts, the top of the crypto markets came when Coinbase (NASDAQ:COIN) went public, and there are expectations that the same may happen to meme stocks once Robinhood is publicly traded. With higher regulations for public companies as well as keeping shareholders happy, it would be best for Robinhood to avoid these controversies moving forward.
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FXStreet
