Support.com (SPRT) has become the new “meme stock” retail traders are pushing to the moon. Shares of the LA-based software company closed 33% higher, at $26.33 on Friday. The stock skyrocketed quite 190% earlier within the session and was the No. 1 trending ticker on Yahoo Finance. ‘The squeeze will continue and accelerate’ The stock caught the eye of retail traders last month supported its high short interest, which currently accounts for about 60% of the float.
“Shares shorted were climbing earlier within the month, but we’ve seen trading recently because the shorts are within the middle of an enormous squeeze,” says Ihor Dusaniwsky of S3 Partners, adding, “The squeeze will continue and accelerate.” Shares were trading above $9 a share on Monday. They touched a session high of $59.69 on Friday. “This rally may be a long buying rally during a stock with a thinly traded float (20 million shares) and tremendous long buying pressure,” Dusaniwsky said.
“Gamma squeeze + momentum buying + some trading = monster rally,” said Dusaniwsky. SPRT shares were halted for volatility out of the gate this morning, seconds into the trading session. At one point Support.com’s market share had quite doubled, surpassing $1 billion. Retail traders are talking about the stock online. Youtuber Matt Kohrs was fielding technical questions moments after a volatility trading halt on Friday. “Can the SPRT squeeze help drive the hedgies to start out the squeeze on AMC (AMC)?” asked one trader.
“I think so, yes, … and not even necessarily from the hedgies which are losing thereon, but I’m brooding about the number of cash apes are making which will flow back to AMC and (GME),” said Kohrs. With the exception of Robinhood (HOOD), which became a meme favorite recently, many retail-fueled rallies start out as a brief 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 Aug. 13. Its revenue came in at $8.5 million, a decrease of 23% compared to an equivalent quarter last year. the corporate reported a net loss of three cents per share for the quarter. In March, Support.com announced a merger with Greenidge Generation, a bitcoin company. Upon completion, Support.com will become a wholly-owned subsidiary of Greenidge. The merger is predicted to shut within the third quarter of this year.