The biggest short squeeze of the season may already be upon us. MicroVision (NASDAQ:MVIS) stock began the month trading at less than $2 per share. Today it is about to finish at more than $4, rising more than 106% since the final week of April.
The automotive lidar solution company hasn’t reported any major growth catalysts, yet certain metrics suggest that it is currently experiencing a major short squeeze which may be destined to continue. MVIS stock has almost doubled over the past week, and it shows no signs of slowing down. This may be highly encouraging for retail investors, but it doesn’t mean they should throw caution to the wind with MVIS stock.
Does this mean that the MicroVision short squeeze will continue into the coming weeks? Let’s take a closer look at the data and assess what investors should be expecting.
MVIS Stock: The Next Short Squeeze?
MicroVision enjoyed a week of solid growth last week, and this one is off to a great start. As of this writing, it is up more than 10% for the day and isn’t showing signs of slowing down. It makes sense that a short squeeze would be brewing for this company. Data from Fintel indicates that there are currently zero shares available to short at the data collator’s “prime lending brokerage.” And throughout the past week, the cost to borrow MVIS stock has risen significantly. The stock boasts a short squeeze score of 79.28 out of 100. Short interest currently accounts for roughly $27% of its float.
On top of that, interest from retail investors has been rising steadily. According to ApeWidom: “During the last 24H MVIS (Microvision) was mentioned 38 times on WallstreetBets by a total of 15 different users.” The number of users mentioning MVIS stock has risen by 300%, and the number of upvotes has increased by 720%. Clearly, the r/WallStreetBets crowd is taking notice and is preparing for the short squeeze to continue.
As of now, it is unclear how long MVIS stock will continue rising. However, once it ends, MVIS stock is likely to find itself back in the red. The reasons to avoid the unstable company haven’t changed since the squeeze began.
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On the date of publication, Samuel O’Brient did not hold (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.