Has SPRT’s Short-Squeeze Play Run Out of Steam? By TipRanks
Investing continues to be dominated by buy-and-hold strategies. A top way to build wealth is by choosing high-quality companies with great cash flows and bright futures.
However, retail investors are making a lot of money by buying short-squeeze stock. These stocks are often referred to as short-squeeze or meme stock plays by investors. Companies like Support.com have shown high volatility in recent years.
SPRT stock was trading at around $2 a year earlier. The stock reached an all-time high of $60 per share in August, but then fell more than 80 percent to its current level.
SPRT stock’s future is uncertain. Let’s look at what are the top drivers that investors should keep on their radar when looking for SPRT stock.
For various reasons, I am currently neutral about this stock. (See Support.com stock charts on TipRanks).
Support.com Stock is Going down
SPRT stock is seeing a huge sell-off and has received a lot attention.
But, retail seems to be going strong. Investors who are looking to increase their short positions focus on the possibility that this stock will squeeze out more. What appears to be true, or at least the data suggest it, is that short-sellers have been increasing the size of their positions in order to make a profit.
SPRT stock might be the next major hedge fund to enter the retail arena.
According to the most recent short interest data, this year has seen a steady rise in the percentage of free float. This company is a topic of hot debate among r/WallStreetBets and others due to its short interest and utilization in SPRT stock.
Support.com is seen by short sellers as being unviable. But retail investors can be confident. The short-term interest rates and low borrow fees are amazing. This stock has a higher chance of getting squeezed than most other stocks on the market.
Which one will prevail? At this moment, it’s not clear who the winner will be. SPRT stock looks like a highly volatile and intriguing stock that you should be watching.
Short Squeeze Prediction of SPRT Stock
Retail investors certainly believe they have the potential to bring SPRT stock and other short-squeeze stocks back to life. Those bullish on the short-squeeze potential note that the IPO price of Support.com stock was around $90 per share when this stock went public. This stock may not be able to reach that level in squeeze situations, so it is not unreasonable.
Support.com, however, is still a stock that displays a bearish sentiment. Recent stock drops are proof that bears are on the winning side. These stocks are showing signs of momentum, so there is little chance for short-term investors.
Many retail investors have been awaiting SPRT stock to surge above $100 per share, despite the fact that SPRT stocks could be a hot commodity right now.
Support.com is a company that perhaps perfectly describes what a momentum stock is. This stock can surge when times are good. When momentum changes, however, it can become a disaster.
SPRT stock can only be considered if you are able and willing to deal with volatility.
Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks cannot guarantee the reliability, completeness or accuracy of any information. This article is not intended to be interpreted as an offer or recommendation for the purchase or sale of securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks, its affiliates, disclaim any liability or responsibility in relation to the articles. You are responsible for your actions based upon the article. TipRanks and its affiliates do not endorse or recommend this link. Performance in the past is no guarantee of future performance, price or results.