(Bloomberg) – The social media mob scored another direct hit, this time with a little-known software company that Wall Street started betting against.
Shares Support.com Inc. soared on Friday, increasing this week’s triple-digit rally after day traders began promoting the Los Angeles-based company, whose platform helps businesses manage support. technical and customer.
Shares are up nearly 150%, reaching the highest level since 2004. Support.com was one of the most mentioned companies on Stocktwits for the previous day and trading volume on Friday was more than 700% of the average of three. months.
Retail traders started taking a look at Support.com last month, after short bets against the company piled up, and interest in the stock appeared to have rekindled earlier this week. Support.com is up in all sessions this week, skyrocketing nearly 400%. The rally has added more than $ 800 million to the company’s market value, which now exceeds $ 1 billion.
Earlier this week, data compiled by Vanda Research showed that Support.com was among the stocks with the highest number of short positions that had seen a recent acceleration in buying by retail investors – as opposed to professionals. Support.com’s outstanding short interest represents about 60% of float, a measure of the shares available for trading, according to data from S3 Partners.
“Stocks short were up at the beginning of the month, but we have seen short coverage recently as shorts are in the midst of a big contraction,” said Ihor Dusaniwsky of S3 Partners. Investors betting against the company have seen $ 95 million in market value losses this year, and Friday’s increase shows that “the squeeze will continue and accelerate,” he said.
Support.com is scheduled to hold an extraordinary general meeting on September 10 regarding the proposed merger with bitcoin miner Greenidge Generation Holdings Inc.
Nota Original:Support.com Surges 400% in Meme Army’s New Short-Squeeze Attack
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