Why Support.com Stock Rocketed Higher Today
Shares of Support.com (NASDAQ:SPRT) surged higher on Thursday, climbing as much as 43.2% earlier in the session, ultimately ending the trading day up 41.1%. That’s not all. The company, which provides technical support services and cloud-based software, has been on fire all week — gaining more than 150% — on the receiving end of an epic short squeeze and a benefit from a cryptocurrency connection.
SPRT shares were halted for volatility out of the gate this morning, seconds into the trading session. The stock is up more than 350% over the last few days.
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.
“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,” said Ihor Dusaniwsky of S3 Partners. Investors betting against the company have seen $95 million this year in mark-to-market losses, with Friday’s surge showing “the squeeze will continue and accelerate,” he said.
Support.com is scheduled to hold an extraordinary general meeting on Sept. 10 regarding the proposed merger with Bitcoin miner Greenidge Generation Holdings Inc.