Today, investors in Creatd (NASDAQ:CRTD) and CRTD stock are seeing massive gains of approximately 28% at the time of writing. Shares of CRTD stock were actually up nearly 45% in early morning trading, as retail investors appear to be piling into this stock.
Indeed, Creatd has been identified as another potential short-squeeze candidate. The company’s short interest ratio of 42% is extremely high, and puts this company square in the sights of retail investors.
Any stock that is this heavily shorted is likely to see retail investor interest. Accordingly, Twitter personality Will Meade has recently commented on this movement. Mr. Meade, a former hedge fund manager, seems to think that hedge funds are likely covering their short positions on small caps like CRTD stock. Thus, the allure of this potential short squeeze is strong today.
Let’s dive into what investors might want to know about this short-squeeze candidate.
Bad news markets stink, good news first sign of a bottom is when the most shorted stocks start moving like $CARV $CRTD
Hedge funds imo are responsible for this selloff they’re long $QQQ stocks and short $IWM small caps
but now it feels like they’re starting to cover
— Will Meade (@realwillmeade) July 8, 2021
CRTD Stock Finding Momentum Again
Creatd’s business model is intriguing for growth investors. Indeed, its platform provides creators with technology and solutions to help them reach a broader audience. And according to the company’s recent press release, more growth is on the horizon.
In late June, Creatd announced that the company’s Vocal+ platform had surpassed 30,000 subscribers. On the basis of this growth, the company provided forward guidance of $1 million in net revenues for Q2. This represents a 300% increase on a year-over-year basis.
In addition to this revenue guidance, the company announced plans to reduce its marketing costs by $1.5 million. The company projects these moves should result in operated expenses of $3.3 million for Q3 this year.
Accordingly, CRTD stock appears to be one that’s not going to be in the black for some time. And given its current market capitalization around $47 million, this is still a stock that’s certainly highly valued. However, retail investors seeking a short-squeeze candidate with solid growth potential certainly have a catalyst to rely on.
Accordingly, CTRD stock has understandably become a favorite among retail investors today. Whether this momentum can continue is anyone’s guess. However, today’s move is bringing more attention to this stock, which should be a positive, on the whole, for investors.
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.