Canada’s Sphere 3D (ANY), a software company, has a lot of potential.

The impressive growth catalysts that have helped this data management, virtualization, and containerization company, has been a boon for cloud-related investments.

Sphere 3D stock is a favorite among retail investors because of a number of factors. Investors are attracted by the obvious upside of Sphere 3D’s core business. A merger with Gryphon Digital crypto mining company made ANY stock a cryptocurrency play.

In recent weeks investors have begun to consider ANY stock as an option for a short-squeeze. This is due to a number of factors we will discuss shortly.

The result has been some pretty impressive volatility in ANY stock. (See ANY stock charts on TipRanks)

Can ANY stock squeeze again? As we consider this question, I am neutral about this stock at the moment. Let’s now dive in to what stock investors might want to learn about.

A Closer Look into Sphere 3D

The company’s core business of software-oriented solutions utilizing public, private, and hybrid cloud strategies is one that growth investors have been enticed by in its own right. Customers can achieve their IT goals with the company’s diverse brands such as Unified ConneXions and SnapServer.

Given the volatility of crypto stocks, it is not surprising to see them fluctuate.

These stocks have a lot of growth potential, which has attracted the attention both retail traders and speculators. This stock has been identified as a possible short-squeeze stock due to its high short interest rates and low borrow fees.

In a series tweets (NYSE:), Will Meade, a well-known investor, commented earlier in the month on ANY stock’s potential. The posts caused a surge in interest in ANY stock. This spike has since receded somewhat.

Sphere 3D remains a target for short-sellers right now. We could see another stock rally of meme stocks. This is a possibility considering the potential upside for these small-cap stocks.

This sentiment shift could be beneficial for any stock as investors switch their focus away from just a few popular options to look at more obscure and risky, higher-reward stocks.

Vital Catalysts Steering ANY Stock Higher

Sphere 3D’s high short interest and borrow fee rates are certainly two catalysts investors and traders are laser-focused on right now. Shares could go higher if there is a short-term increase in the stock price of this company. That’s at least the hope for many investors who are short-term.

Another catalyst that investors will closely monitor is the state of crypto markets, and how stable they are. The market is still digesting Sphere 3D’s offer to buy Gryphon. This could serve as a catalyst for a new squeeze.

Both of these catalysts present high-risk risks. Fundamentals-based investors may not be able to see as much in Sphere 3D.

Bottom Line

Sphere 3D is a compelling play for aggressive investors seeking to add risk in this market. Although this strategy has been successful in the short-term, there is always the possibility that the market will turn.

The stock should only be considered by people who are able to tolerate volatility and have high risk tolerance.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article

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