There’s a new “meme stock” pushing retailers to the moon. Support.com (SPRT), a software company based in Los Angeles, is up more than 150% today.
SPRT shares were halted this morning, about 45 seconds after the trading session, due to volatility. The stock is up more than 300% in recent days.
‘The squeeze will continue and accelerate’
The stock caught the attention of retailers last month based on high short-term interest rates, which currently account for about 60% of the float.
“Short positions in stocks climbed earlier this month, but we have recently seen short coverage as the shorts are in the midst of a major tightness,” said S3 Partners’ Ihor Dusaniwsky, adding, “The tightness will continue and accelerate.”
Shares traded above $9 a share Monday. Midway through today’s session, they were above $45 each.
“This rally is a long buy rally in a stock with a low-traded float (20 million shares) and tremendous long buying pressure,” Dusaniwsky said.
“Gamma squeeze + buy momentum + some short coverage = monster rally,” Dusaniwsky said.
Retailers have been talking about the stock all morning. During the frenzied action, Youtube presenter Matt Kohrs, answered technical questions just after a volatility shutdown.
“Can the SPRT squeeze help the hedgies start the squeeze on AMC (AMC)?” a trader asked.
“I think so, yes, … and not even necessarily from the hedgies who lose on it, but I think about the amount of money that monkeys make flowing back into AMC and GME (GME),” Koers said.
‘Any short-term interest rate above 25% will interest people’
With the exception of Robinhood (HOOD), which recently became a meme target, many retail-driven rallies are starting out as a short squeeze. That was the case for both GameStop and AMC.
“Any short-term interest rate above 25% will interest people”, @redditinvestors told Yahoo Finance via Twitter.
Support.com reported its second quarter results on Aug. 13. Revenue came in at $8.5 million, down 23% from the same quarter last year. The company reported a net loss of 3 cents per share for the quarter.
In March, Support.com announced a merger with Greenidge Generation, a bitcoin mining company. Upon completion, Support.com will become a wholly owned subsidiary of Greenidge. The merger is expected to be completed in the third quarter of this year.
Ines is a market reporter who reports on stocks on the trading floor of the New York Stock Exchange. Follow her on Twitter on @ines_ferre
Read the latest cryptocurrency and bitcoin news from Yahoo Finance