Shares of multimedia company Urban One (NASDAQ:UONE) are soaring today. Indeed, UONE stock rocketed more than 20% higher in early morning trading on some very heavy volume.
Today’s move follows an extreme period of volatility for this stock. Indeed, UONE stock was trading below $5 per share in early May, only to surge to nearly $25 per share in a matter of weeks. Since then, Urban One has seen retail investor interest dry up somewhat, with shares closing yesterday at the $7.50 level.
However, today’s move toward the $9 level signals sentiment may be changing with this stock. Indeed, Urban One’s business model spanning radio broadcasting, cable TV, reach media and digital is a rather intriguing mix of old-school and new-world media. Investors seemingly can’t make their minds up about this stock of late.
Let’s dive into some of the reasons behind today’s rise in UONE stock.
UONE Stock Surging on Heavy Retail Buying
It appears Urban One is yet another stock that retail investors have targeted as a potential short squeeze opportunity. Indeed, a number of Twitter personalities have provided their take on why UONE stock could really run from here. According to Will Meade, UONE stock is one he believes could go to $15 in short order. That is, if the stars align.
— Will Meade (@realwillmeade) July 8, 2021
In this era of speculation, anything’s possible. However, with extremely high momentum plays like this, momentum has a way of working in both directions. Investors ought to take a look at the historical chart of UONE stock to see what this means for potential short-term swings.
Urban One’s previous stock rise was tied to an approval for Urban One’s casino project in Richmond, Virginia. That said, post-announcement, it appears investors took profits and largely have waded into other speculative plays for near-term gains.
The fact that today’s move came on little news is an indication that the market is likely pricing in a higher probability of a squeeze today. Investors should remember to invest in highly speculative stocks with what they can afford to lose, according to their risk tolerance levels.
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.