Today, short squeeze mania is once again hitting the market in a big way. A number of high-profile short squeeze plays opened dramatically higher this morning. Indeed, investors in FuelCell Energy (NASDAQ:FCEL) and FCEL stock are seeing massive buying pressure this morning on an otherwise flat day in the markets.
Currently, the company’s already traded more shares than its average daily volume. Investors in FCEL stock appear to be enamored by the company’s rather high short volume ratio of 23%. This level of short interest positions FuelCell well for a potential squeeze — that is, if retail investors show up and continue to buy this stock en masse.
Additionally, mentions of the company on various social media platforms is exploding this afternoon. A number of reasons could be causing this spike in retail investor interest. However, one key catalyst investors have on their radar right now is the company’s upcoming earnings report.
Let’s dive into why these catalysts are driving such intense volatility in FCEL stock today.
Upcoming Earnings and Heavy Retail Buying Buoying FCEL Stock
FuelCell is one of those hypergrowth options that has seen heavy retail buying in the past. The previous short squeeze movement in late-January took FCEL stock to a 52-week high of nearly $30 per share.
Accordingly, today’s move of more than 15% to $11.57 indicates much more upside could be on the horizon — that is, if this short squeeze mania takes hold in a similar fashion to the previous rally we saw earlier this year.
This short squeeze catalyst is compounded by typical pre-earnings volatility for FCEL stock. FuelCell will share its earnings report on June 10. Accordingly, it appears investors are pricing in bullish momentum into the company’s earnings call. The company will hold this call via webcast at 10 a.m. Eastern on Thursday.
As a global leader in fuel cell technology, investors will keep a close eye not only on FuelCell’s historical performance, but its forward-looking expectations. Indeed, FCEL stock remains a hypergrowth play for long-term investors. At these levels, investors will want to see a clear pathway to long-term growth, which has seemingly become obscured in recent weeks.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.