There's a new 'meme stock' retail traders are pushing to the moon. Shares of Support.com (SPRT), a software company based out of Los Angeles, is up more than 150% today. The stock is the #1 trending ticker on Yahoo Finance.
SPRT shares were halted for volatility out of the gate this morning, about 45 seconds into the trading session. The stock is up more than 300% over the last few days.
'The squeeze will continue and accelerate'
The stock caught the attention of retail traders last month based on its high short interest, which currently accounts for about 60% of the float.
"Shares shorted were climbing earlier in the month, but we have seen short covering recently as the shorts are in the middle of a big squeeze," says Ihor Dusaniwsky of S3 Partners, adding, "The squeeze will continue and accelerate."
Shares were trading above $9 a share on Monday. By mid-session today, they were above $45 each.
"This rally is a long buying rally in a stock with a thinly traded float (20 million shares) and tremendous long buying pressure," Dusaniwsky said.
'Gamma squeeze + momentum buying + some short covering = monster rally," said Dusaniwsky.
Retail traders have been talking about the stock all morning. During the frenzied action, Youtuber Matt Kohrs, was fielding technical questions moments after a volatility halt.
"Can the SPRT squeeze help drive the hedgies to start the squeeze on AMC (AMC)?" asked one trader.
"I think so, yes, ... and not even necessarily from the hedgies which are losing on it, but I'm thinking about the amount of money apes are making that will flow back into AMC and GME (GME)," said Kohrs.
'Any short interest above 25% will get people interested'
With the exception of Robinhood (HOOD), which became a meme target recently, many retail-fueled rallies start out as a short squeeze. That was the case for both GameStop and AMC.
"Any short interest above 25% will get people interested," @redditinvestors told Yahoo Finance via Twitter.
Support.com reported its second quarter results on August 13. Its revenue came in at $8.5 million, a decrease of 23% compared to the same quarter last year. The company reported a net loss of 3 cents a 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 close in the 3rd quarter of this year.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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August 28, 2021 at 12:02AM
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