One of today’s more interesting movers is Qurate Retail (NASDAQ:QRTEB). This little-known retailer focused on video commerce has surged more than 60% at the time of writing on little news. Notably, QRTEB stock has seen more than 5.5 million shares trade hands in this early afternoon session, relative to an average daily volume of less than 3,000 shares.
Thus, it appears the low-liquidity nature of this stock is at play with investors looking to induce a squeeze. Typically, short interest and borrow fee rates are the main aspects investors consider when looking to squeeze a stock. However, stocks with low floats can be prone to such moves, in a situation where a whale comes with a massive order in a short amount of time.
Perhaps someone knows something we don’t. That’s a possibility, and could be driving speculative interest in Qurate’s Class B shares. Notably, this is a stock with both Class A and Class B shares, with QRTEA stock actually moving lower, despite this move in the company’s lesser-traded varietal.
Let’s dive into what investors should make of this move today.
Is QRTEB Stock a Buy Following This Incredible Run?
Of course, after such an explosive intraday move, investors may be right to question the sustainability of the run in QRTEB stock. After all, the company’s more widely-traded Class A shares are down significantly. This divergence doesn’t make much sense, other than from a very speculative standpoint.
As many may correctly assume, QRTEB stock is seeing interest surge on social media. Retail investors looking for momentum stocks certainly have a runner right now. Indeed, among thinly-traded stocks with a $1 billion market capitalization or more, Qurate Retail is an interesting option right now.
That said, it’s my view that now isn’t the time to make speculative bets in any sector. Today’s inflation reading has spooked the market, and is likely to lead to a more aggressive Federal Reserve moving forward. Accordingly, it’s going to be tough sledding for any stock investors view as high-risk, at least in the near-term.
For those looking to take a gamble, QRTEB stock is certainly poised to be highly-volatile from here. In any event, this company will be an intriguing one to watch in the coming days.
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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.
