Alright Apes! It looks like the AMC Short Squeeze has finally begun after a long wait. Back in March 2022, AMC shares peaked at $30 so that’s our near term price target for thist week beginning Monday, August 8th 2022.
There are a lot of things to discuss so let’s get right into what’s going to potentially happen next week.
AMC Stock Price Prediction: $30
AMC reported its Q2 2022 quarterly results and I thought the numbers were pretty good. The company grew revenue to $1.17 billion but lost $121 million in Q2. Cash on the balance sheet looks good sitting at $1.1 billion.
AMC announced a special preferred dividend to shareholders on record before August 15th. That means anyone who holds AMC stock up until next Friday the 12th will receive the dividend.
My guess is AMC offered the dividend to help pay off its massive debts. It’s also a hattip to Ape nation and perhaps even the “APE” crypto coin.
There is a lot of buying interest plus the shorts are losing millions betting against Ape Nation.
But let’s not get carried away: AMC won’t ever go to $1,000 or some crazy price target because traders will take profits long before then. With over 500 million outstanding shares, there is too much supply to reach ridiculous price targets.
I don’t mean to be a bummer but I want to be transparent with my readers.
Our price prediction is around $30, which represents previous tested resistance 5 months ago.
That doesn’t mean we will stay under $30. AMC has the potential to double from these levels in the next 13 days. Once the special dividend is issued on August 19th, I think the hype will fade and traders will move onto another meme stock.
My AMC Gameplan for This Week
I picked up some 8/12 $24 calls and still have my long shares. As we approach $30 resistance, I will be tempted to take some profits off the table. Once we reach Friday of next week, I think a lot of people will consider dumping AMC stock on the following Monday due to already locking in the dividend.
Do your own research but realize that this could only last a week or so. Take profits along the way and watch your nest egg closely.