Support.com (SPRT) is continuing to rise after a massive short squeeze rally. Shares of the California technical support company were up more than 50% in the first minutes of trading after gaining more than 180% over the last five sessions.
Support.com’s stock had caught the attention of retail traders based on its high short interest.
“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.
As of 9:40 AM Eastern on Monday, the stock was trading at around $40. Last 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’
“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