One of the stocks that’s absolutely skyrocketing today is that of the e-commerce platform Nogin (NASDAQ:NOGN). At the time of writing, NOGN stock has surged more than 110%. This move comes on little news, suggesting it’s a momentum-driven rally for this relatively low-float stock.
As has been the case with other low-float micro-cap stocks, Nogin has seen an explosion in trading volume today. Given the relative lack of shares on the open market, such momentum-driven moves can cause rallies like we’re seeing right now.
Additionally, there’s chatter on social media platforms that a potential short squeeze could be brewing. Given Nogin’s impressive 78.5% short interest ratio, this stock’s short squeeze potential certainly is high.
Let’s dive into what to make of today’s move and whether this momentum can be sustained.
Can NOGN Stock Continue Its Impressive Rally?
As mentioned, it appears there are a few fundamental drivers behind today’s move in NOGN stock.
A combination of a very small float, low per-share price, and high short interest ratio generally portends well for those banking on a short squeeze. Add in a little FOMO and social media buzz, and you’ve got the elements needed for a rally like today’s movement.
It also helps that Nogin is a micro-cap stock worth less than $10 million yesterday. Thus, this stock has potentially incredible upside if enough investors buy into this momentum trade.
Now, as we’ve seen with even the highest-profile short-squeeze stocks over the past year, what goes up eventually comes down. That said, how much more room does this move have to the upside?
If anything, NOGN stock will be an intriguing one to watch. This is a company I’ll monitor moving forward, considering the explosiveness of today’s move.
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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.