Petros Pharmaceuticals (NASDAQ:PTPI) stock is taking off in pre-market trading on Monday as short-squeeze talk on social media pushes shares higher.
Several traders are discussing PTPI stock on Twitter (NYSE:TWTR) with some mentioning it as today’s short-squeeze target. That includes a few with decent-sized audiences that could help spread the word of a short squeeze.
With that comes heavy trading of PTPI stock as retail traders pile into the company’s shares. As of this writing, more than 14 million shares of the stock have changed hands. That’s more than double the company’s daily average trading volume of about 6.6 million shares.
Of course, that doesn’t mean traders are going to want to dive tight into PTPI stock. We know this short squeeze can’t last forever. When it ends, there’s a good chance that some investors will be left holding the bag.
That’s the danger that comes with investing in penny stocks like PTPI. Its low price of just over $2 per share makes it easy to manipulate. The company also only has a market capitalization of $27.484 million. These are both factors to keep an eye on when a stock starts to rise with no news behind it.
PTPI stock is up 69% as of early Monday morning but is down 52.3% since the start of the year.
Investors seeking more stock market news will want to stick around!
InvestorPlace has all the latest stock market coverage that traders need to know about. That includes what has Li Auto (NASDAQ:LI) stock on the move, this morning’s biggest pre-market stock movers, as well as an update on Ethereum (CCC:ETH-USD). You can get all of this info from the following links!
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On the date of publication, William White 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.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed