All week, Troika Media (NASDAQ:TRKA) has been catching investors’ attention. Given the volatility in TRKA stock, that’s not too surprising.
To recap, Troika shares erupted on Monday, ending the day higher by almost 50%. On Tuesday, shares fell roughly 27%. However, at one point in the session, TRKA stock was down more than 50% from the high.
More of the same is being delivered on Wednesday. Shares are down about 30% on the day and are still below Tuesday’s low. In other words, shares are down more than 57% from this week’s high!
In fact, the decline was enough to land Troika on the SEC’s Short Sale Restriction (or SSR) list.
So what’s going on with this name?
Troika Media reported earnings on Tuesday morning. After the company reported its results for the prior six months, shares initially burst to the upside. However, after topping out at 99 cents, TRKA stock promptly rolled over.
Despite the big moves all week, don’t beat yourself up if you’re unfamiliar with this name. After the recent volatility, shares now sport a market of just $35 million — peanuts compared to most popular stocks.
Why TRKA Stock Is Disappointing Investors
Investors who are long this stock are disappointed. According to Fintel, Troika Media stock has a current short interest of more than 43%. Combined with the company’s earnings report, that had investors looking for a monumental short squeeze.
However, when we consider the stock’s prior rally, that seems like a lot to ask for.
Ahead of earnings, TRKA stock was already up 705% from the December low. From last month’s low, shares were up over 335%. The move was already quite impressive, even if the catalysts were appearing to line up.
As Eddie Pan wrote on InvestorPlace earlier: “Overall, the earnings report demonstrated a significant increase in growth but widening net losses.”
With all the volatility and the sharp decline over the past few days, it’s no surprise to see some heavy selling pressure in the stock. Shares are up considerably over the past few months. Anyone who bought near the low has generated multiples of their original investment. Locking in some or all of those gains in the logical thing to do.
That said, anyone who is investing or trading TRKA stock needs to remember that it’s a highly speculative asset.
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On the date of publication, Bret Kenwell 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.
