Is Clovis Oncology (CLVS) Stock the Next Big Squeeze?

  • Clovis Oncology (CLVS) is surging by impressive amounts today.
  • The meme stock has been flagged by Will Meade as a likely gamma squeeze candidate.
  • But today's spike in CLVS stock is also likely due to shareholders' rejection of its reverse stock split.
"CLVS stock" - Is Clovis Oncology (CLVS) Stock the Next Big Squeeze?

Source: Shutterstock

One of 2022’s most popular meme stocks is shooting up today. Microcap Clovis Oncology (NASDAQ:CLVS) has spiked by 30% as of this writing. Although its gains appear to be tapering off, it is hard to ignore this type of surge. Today’s company-specific news is that shareholders have rejected the proposed reverse split of CLVS stock.

While that news is certainly pushing the stock up, there is another catalyst that investors shouldn’t ignore. CLVS stock has been flagged as a top gamma squeeze candidate and is garnering significant traction on social media.

Is CLVS Stock the Market’s Next Squeeze?

Short analysis platform Fintel currently ranks CLVS stock as the most likely candidate for a gamma squeeze play. As SmartAsset states, a gamma squeeze occurs “when the underlying stock’s price begins to go up very quickly within a short period of time.”

That certainly applies to CLVS. The stock has risen nearly 60% in the past five days and 265% over the past month. It has jumped 9 places on Fintel’s gamma squeeze leadership board and boasts a score of 99.19.

The social media traction that CLVS stock is receiving, though, is likely due to Twitter influencer Will Meade. The short investor shared a screenshot this morning of Fintel’s top five rankings of both short and gamma squeeze stocks. He later shared an image of the stocks with the morning’s highest trading volume, of which CLVS stock ranked fourth.

Since Meade’s tweets went out, social media has been buzzing as investors tout CLVS stock’s gamma squeeze potential and marvel at its heavy volume. One user claimed it will “experience [a] gamma squeeze anytime soon” while another described it as “squeezing now.”

Some investors have made it clear they expect Clovis to break $3 per share very soon, and it looks poised to do exactly that. They see CLVS stock as the next big gamma squeeze, and they are pushing hard for the type of bullish plays that will make it happen. The impressive trading volume is consistent with the phenomenon.

What Comes Next for Clovis

As with any meme stocks that skyrockets on social media hype, there is one question that investors must ask: How long can CLVS stock keep rising? There’s no way to say for sure, especially when it is potentially in the midst of a gamma squeeze. But one thing that is easy to predict is that when this stock falls, it will fall hard.

We’ve seen CLVS rise on treatment trials and buyout rumors. But until an actual growth catalyst is confirmed, it will remain a meme stock that rises and falls with social media interest.

The crowd that put Gamestop (NYSE:GME) and AMC Entertainment (NYSE:AMC) on Wall Street’s radar is hard at work keeping CLVS stock in the green. When they lose interest, as they inevitably will, it will come crashing back down to earth. But for now,  investors should be watching CLVS stock as this gamma squeeze runs it courses.

On Penny Stocks and Low-Volume Stocks: 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

On the date of publication, Samuel O’Brient 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.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/is-clovis-oncology-clvs-stock-the-next-big-squeeze/.

©2022 InvestorPlace Media, LLC