SCWorx (NASDAQ:WORX) is an intriguing company, in more ways than one. This software provider for healthcare-related businesses has not been a stock on many investors’ radars. Indeed, WORX stock currently has a market capitalization of only $27.5 million at the time of writing. And that’s after today’s 19% spike.
Given today’s price action, investors may guess that this is a stock that’s gaining a lot of traction among retail investors. Such appears to be the case, as WORX stock makes its rounds on popular social media platforms today.
The company’s business model in and of itself is enticing. Pushing the short-squeeze narrative aside for a second, SCWorx provides the electronic plumbing the healthcare industry relies upon to operate effectively. The company provides big data analytics, reporting and back-end data services to its clientele. Everything from electronic medical-record management to data integration and warehousing is provided by SCWorx.
However, SCWorx has found itself near the top of the list of potential short-squeeze plays of late. Let’s dive into why.
Retail Investors Banking on WORX Stock as a Short-Squeeze Candidate
Today’s 19% rise in WORX stock appears to be directly correlated to the company’s growing interest on social media platforms. Retail investors have pointed out that WORX stock is the most shorted stock on the market right now. With a short interest level around 53% at the time of writing, SCWorx is certainly a company investors feel is worth a shot. Additionally, the company’s relatively low market cap and per-share price make this stock attractive for those looking to orchestrate a squeeze.
One other interesting catalyst many investors have pointed to is the fact that SCWorx has been a facilitator of surgical masks for hospital workers in the past. In March 2020, as the pandemic was breaking, SCWorx went to bat for its clients in a big way. While an altruistic move, investors are betting that any sort of similar arrangement could be very profitable, given the rise in delta-variant cases we’ve seen recently.
Like many short-squeeze plays, WORX stock is highly speculative. Indeed, this is a company investors should approach with a strong stomach for volatility. That said, anything is possible these days, as we’ve seen.
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.