Even if you’ve never heard of FaZe Clan (NASDAQ:FAZE) until recently, there’s a good chance you’ll see this company in the financial headlines soon. That’s because FAZE stock is heading higher on heavy trading volume. Furthermore, the stock appears to be a perfect short-squeeze candidate.
FaZe Clan appeals to Generation Z (“Zoomers”) with its offerings of branded content, blogs and livestreams of competitive gaming tournaments. It’s not a huge company, as FaZe Clan’s market capitalization is around $1.4 billion.
And to be honest, the company hasn’t been publicly tradable for very long. In fact, FaZe Clan began trading on the Nasdaq not long ago under the symbol FAZE through a special purpose acquisition company (SPAC) deal.
Yet, today’s traders probably aren’t particularly concerned about how old or how big this company is. Rather, they’re focused on FaZe Clan’s potential as a short-squeeze candidate. Indeed, there’s evidence that Reddit traders might choose FaZe Clan as the next target for a massive squeeze.
What’s Happening With FAZE Stock?
For one thing, FAZE stock powered 15% higher today, with over 9 million shares trading hands within the first hour. On a typical day, the volume on this stock is around 1 million shares.
There’s no company-specific news to justify this magnitude of price movement and volume. So again, it’s possible that meme-stock traders are circling the wagons around FaZe Clan.
To confirm this hypothesis, we can check the latest data from short analytics platform Fintel. Amazingly, FAZE stock has moved to the top of Fintel’s short-squeeze leadership board with an overall short-squeeze score of 99.79.
And get this: FaZe Clan shares have a short float of 99.38%, which is mindboggling. Fintel also lists the shares as having a borrow fee rate of $1,058.11, believe it or not.
FaZe Clan wasn’t profitable in 2022’s second quarter, but hardly anyone seems to care about the company’s fundamentals today. For now, it’s all about meme-stock possibilities, punishing the short sellers and, maybe, gaining quick profits.
On the date of publication, David Moadel 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.