Shares of Newegg Commerce (NASDAQ:NEGG) are making a big move higher on Friday, despite there not being any company-related news. But there is another reason why NEGG stock is soaring today.
Before we get into that, some investors may not know much about Newegg and what the company does. But don’t worry, InvestorPlace has you covered.
Newegg is a California-based ecommerce firm “offering direct sales and an online marketplace platform” for a number of different products. Those products range from IT computer components and consumer electronics, to smart home and gaming options. Newegg boasts more than 37 million customers and over 382 million total website visits.
Moreover, as InvestorPlace writer Brenden Rearick recently put it:
“[Short squeezes] … are what retail investors dream of these days. With their potential for massive gains and popularity on r/WallStreetBets, looking for the next squeeze is a viable, if volatile investment strategy. Investors are now seeking out short squeeze stocks on the daily, placing their bets on the next company to pop.”
And that’s exactly where we appear to be with NEGG stock.
On Monday, research firm Fintel released a list of likely squeeze candidates, ranking their potential from 1 to 100. NEGG stock came in at No. 2 on that list, with a rating of 98.5%. Additionally, according to the rankings, the ticker also holds a major level of short interest — more than 30% of the float.
NEGG stock was up nearly 14% as of Friday afternoon.
On the date of publication, Nick Clarkson 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.
Nick Clarkson is a web editor at InvestorPlace.