One of today’s biggest market movers is a little-known penny stock that hasn’t done much since its initial public offering (IPO). Innovative Eyewear (NASDAQ:LUCY) made an unimpressive trading debut in August 2022 and has spent the past six months in a race to the bottom. However, things took a dramatic turn today as LUCY stock surged in early morning trading.
The company hasn’t seen any major catalysts lately. But as it turns out, momentum for a short squeeze has been building steadily. Today, LUCY is surging and has reached impressive heights after weeks of little growth or momentum. This leads to the inevitable question whenever a short squeeze is unfolding: just how high can the stock go?
To find out, let’s dive deeper into this company and the forces driving the current squeeze.
What’s Happening With LUCY Stock?
Innovative Eyewear didn’t pick the best year to start trading. Following its August IPO, the 2022 bear market began pushing it down steadily. The stock shed more than 40% of its value during this time. However, before noon today, it surged by an astounding 183%. LUCY stock has come down a bit since then, but its gains are still high. As of this writing, it is up 123% for the day.
One person recognized LUCY’s short-squeeze potential before the internet caught on. Early this morning, an investing-centric Twitter account sounded the alarm that LUCY had the markings of a likely short squeeze. It flagged that there were currently no shares available for borrowing and that the cost to borrow remained well above 400%. The post also noted the company’s low float and market capitalization. Investing influencer and short-squeeze expert Will Meade retweeted the post, which he dubbed an “unbelievable call” and instructed traders to follow the account rather than pay attention to Discord channels.
That said, Innovative Eyewear has been receiving significant attention across social media today. According to data from ApeWisdom, mentions of the LUCY stock have risen 200% in the past 24 hours while it has received 101 upvotes, an increase of roughly 10,000%. However, shares have fallen from their midday peak, suggesting that the short squeeze may be ending.
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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.