![amc squeeze prediction amc squeeze prediction](https://i.ytimg.com/vi/BM33wLm8jao/maxresdefault.jpg)
Some may believe shares went parabolic starting in late May due to a short-squeeze. Putting it simply, there’s no reason to dive in today at $58.30 per share, with the idea that it’s going to surge yet again. Running the numbers, even at a fraction of today’s trading price, the stock’s overvalued.Ī move back down to single-digit levels may be inevitable. Trading far above its underlying value, and the pie cut into many more slices, it’ll be the longs, not the shorts, that cave in. Sure, AMC is planning to put the cash it’s raised from secondary offerings to pare down debt, but replacing debt with dilutive equity is not going to create shareholder value.
![amc squeeze prediction amc squeeze prediction](https://i.ytimg.com/vi/f2IF4MWtGHA/maxresdefault.jpg)
This meme stock? It lacks this sort of catalyst. If it does, it could give at least the shares a path to grow into their valuation. The jury’s still out whether this gambit will work.
![amc squeeze prediction amc squeeze prediction](https://i.ytimg.com/vi/kmOndrWPehE/hqdefault.jpg)
GameStop may be overvalued as well, but at least it has its e-commerce transformation plan to fall back on. On the other hand, in terms of underlying value and long-term prospects, AMC makes the other popular meme stock, GameStop (NYSE: GME), seem like a value play by comparison. Sure, retail speculators, led by Reddit’s r/WallStreetBets, have so far prevailed against the so-called “smart money” short sellers.