Support.com surges 45% in pre-market after monster rally
Support.com (SPRT) is headed for another massive rally on the backs of retail traders. Shares of the California technical support company were up 45% in pre-market after gaining more than 180% over the last five sessions.
Support.com’s stock caught the attention of retail traders based on its high short interest. On Friday shares soared as high as 190% while the company’s market cap temporarily surpassed $1 billion.
“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 on Friday.
On Friday shares touched a session high of $59.69 and closed at $26.33.
“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.
‘Any short interest above 25% will get people interested’
With the exception of Robinhood (HOOD), which became a meme favorite recently, many retail-fueled rallies start out as short squeezes. 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 decreased 23% compared to the same quarter last year. The company reported a net loss of 3 cents per share for the quarter.
In March, Support.com announced a merger with Greenidge Generation, a bitcoin mining company. Upon completion, Support.com will become a wholly-owned subsidiary of Greenidge. The merger is expected to close in the third quarter of this year.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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Read more: https://mcc.exchange/2021/08/29/support-com-surges-45-in-pre-market-after-monster-rally/
Text source: MCC.EXCHANGE
