Meme stocks and short squeeze plays seem to be all investors want to talk about this year. Special purpose acquisition companies (SPACs) have ebbed and flowed in popularity and crypto has had its fair share of market-wide volatility. But meme stocks have been en vogue for the whole of the year. But, how would investors feel about a short squeeze stock that combines the excitement of meme trading with cybersecurity issues that have ramped up in discussion recently thanks to multiple ransomware hacks? Well, IronNet (NYSE:IRNT) is exactly that, and investors are taking kindly to the play, as evidenced by IRNT stock’s big gains this morning.
FBI director Christopher Wray said earlier in the year that the dangers of ransomware attacks are comparable to that of a violent act of terrorism. Of course, these comments came in the aftermath of one of the largest ransomware attacks in the history of the U.S. — the Colonial Pipeline hack. The fuel company paid the attacking body $4.4 million in Bitcoin (CCC:BTC-USD) in order to restore operations. Meanwhile, hacking groups have targeted a variety of other industries, attacking meatpacking giant JBS as well as academic institutions like Howard University.
IRNT Stock Booms as Investors Capitalize on Short Squeeze Potential, Cybersecurity Concerns
IronNet is a cybersecurity company whose dealings primarily revolve around preventing ransomware attacks. The company is the product of NSA Chief Keith Alexander. The man has decades of experience at the highest level with cybersecurity threats and ransomware.
It’s fairly intuitive of investors to latch onto IRNT stock. The company has some obvious star power on its board of directors, of course. However, beyond being a strong cybersecurity play, institutional short interest is driving investors toward the stock in an even bigger way. The stock has a short volume ratio of 30.97, making it one of the more heavily shorted plays in the cybersecurity space. Naturally, social media chatter has been heating up around IRNT stock thanks to this revelation within the short squeeze investing community.
Today, it appears investors are piling into the stock and triggering a squeeze. As of press time, IRNT is up 46% to a price of $24.52. At its highest point this morning, the stock stood at over $28. Trading volume continues to surge as well. Over 21 million shares of IRNT are trading hands against an average of 467,000.
On the date of publication, Brenden Rearick 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.