Over the past week, investors in Meta Materials (NASDAQ:MMAT) have seen impressive gains. Indeed, shares of MMAT stock are currently up more than 40% over the past five trading sessions, as volume and interest begins to build around this name.
As growth investors focus on companies with high-end, innovative technologies, Meta Materials has come into focus. This is a company designed to be the next-generation growth stock investors are looking for. The company produces a range of high-performance nano composites and other functional materials powering the explosive technological growth our economy is seeing.
Accordingly, Meta Materials is growing in interest among investors as a “picks and shovels” play on various strong secular catalysts. A speculative pick, Meta Materials provides investors with tremendous growth potential.
However, another key catalyst appears to be driving MMAT stock today. Let’s dive into what investors are focusing on right now.
MMAT Stock Higher on Short-Squeeze Potential
Potential short-squeeze stocks have been taking off once again this past week. For investors in Meta Materials, this is a good thing.
It appears Meta Materials has made the short-squeeze list among many retail traders. However, today, an S3 Partners executive outlined his short-squeeze thesis for MMAT stock. This call, via a CNBC interview, has unsurprisingly emboldened retail traders to jump into MMAT stock.
Seeing the previous impressive rallies in Meta Materials has provided evidence of this stock’s potential. However, what S3 Partners and many retail investors are focusing on is Meta Materials’ high short interest ratio, high borrow rate, low float and relatively low share price. These are factors that tend to drive short-squeeze potential in given stocks. And today, it appears Meta Materials has what such investors are looking for.
Whether or not this stock squeezes higher than its previous rally to more than $20 per share remains to be seen. However, it appears speculators are willing to put a little risk capital on this horse today.
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.