The power of digital armies to move meme stocks has been well documented. This is particularly true as they have emerged as a dominant market trend in 2021. AMC Entertainment Holdings (NYSE:AMC) has enjoyed a year of significant growth, much of which was spurred by its digital investor army, who call themselves “AMC Apes.” AMC stock recently surged on the release of the highly anticipated Spider-Man: No Way Home, but a new social media trend has proved that it isn’t done yet. An alleged technical glitch has led to a trending hashtag: #AMCSI40. Indeed, the conversation surrounding AMC stock has turned to its rising short interest.
What’s Happening With AMC Stock?
All day, Twitter (NYSE:TWTR) has been buzzing with speculation since popular trading platform TD Ameritrade reported that AMC stock had a short interest (SI) of 40.25%. This type of speculation, combined with the massive social media traction it quickly generated as #AMCSI40 caught fire, has sent AMC stock rising all morning. As of this writing, it is up nearly 3% and shows no signs of slowing down.
Naturally, the ape army was quick to spring into action. #AMCSI40 has been trending all morning as the stock has risen on short speculation. But as of now, it’s unclear how accurate much of the information going around is. Attempts to verify it has not yielded anything conclusive.
Why It Matters
It’s important to note that other venues have reported different data. Ortex lists AMC’s SI as 14.85%, which, while high, is not as significant as an SI of more than 40%. One Twitter user claimed yesterday that Fintel, a leader in the field of short interest data and analysis, was listing AMC’s SI as over 40%. However, as of today, Fintel lists the company’s short interest as 18.84%. As this figure is much closer to that provided by Ortex, it seems like a further indication that the 40% number may be faulty.
One recent tweet allegedly provided data from RBC Direct Investing that the number was accurate. Another provided the same from Ally Investing. The response it received, though, has been overall quite skeptical.
#AMCSI40 these are not glitches $AMC pic.twitter.com/6NUvcybqoD
— mohnarc (@Mohnarc) December 29, 2021
Here is another one from @AllyInvest, showing #AMCSI40.
They are not Glitches. pic.twitter.com/jcFLhsVmeL— APES MAKE CHANGES (@APESMAKECHANGES) December 30, 2021
Others took the mindset that the number is indeed a glitch, reminding users that AMC has seen plenty of glitches during the past year.
$AMC Glitch in the #matrix #AMCSI40 #AMC https://t.co/idzZo4Uapf
— Zensei (@Zen5ei) December 30, 2021
One user reached out to TD in attempt to verify the information. While he shared the responses he received, they did not yield anything conclusive.
https://twitter.com/jhuntermav/status/1476232848021471234
As the stock has continued to rise, though, one user who claims to be affiliated with Benzinga touted the benefits of a bullish play on AMC.
$AMC Chart looking bullish now #AMCSI40 ,#AMC pic.twitter.com/WgA0pDb0rp
— Tofiq Fazlullah CIA (USA) ,CMA (UK ) (@TOFIQFAZL) December 30, 2021
That certainly seems to be the general consensus among the ape army this morning, as many users have pushed for bullish plays. It seems the apes are employing the battle cry of “buy the dip” and urging their peers not to sell right now, even as pressure mounts amid short squeeze speculation.
What It Means for AMC Stock
This case of mixed data makes for very tough calls. While everyone seems to have some theory of alleged contact with a brokerage house to offer, no one has been able to produce anything concrete to serve as conclusive evidence that AMC’s short interest is actually as high as has been speculated.
As of now, all we can do is watch and wait in hopes that a trusted source will offer some insight. For retail investors, this type of data is crucial. When it is skewed, chaos can easily ensue. However, if any digital army can withstand this type of heat, it’s the AMC apes. We’ll be watching closely to see if it truly is a glitch or something more serious.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
