One of the market’s biggest sensations so far this week has been Tupperware Brands’ (NYSE:TUP) unprecedented surge. The company’s products are well known, but for the past six months, TUP stock has been progressively trending downward. In fact, it hasn’t traded above penny stock status since November 2022 and has fallen 66% year-to-date (YTD).
However, today it has skyrocketed, and signs point toward a massive short squeeze. As of this writing, TUP stock is up 51% for the day, and while it recently dipped, it is still up 110% for the past week. As the company hasn’t reported any news that could serve as a growth catalyst recently, it seems as though TUP is the market’s current short squeeze play.
Does this mean its growth will continue, or will it die off as quickly as it rose? Let’s take a closer look at the factors impacting the TUP stock today.
TUP Stock: The Next Big Short Squeeze?
As of now, there is ample evidence to suggest that TUP stock is currently being squeezed to the top. Data from Fintel shows that short interest is quite high, accounting for more than 23% of the stock’s float. On top of that, the leading prime brokerage tracked by Fintel has, three times in the past six days, run out of shares to short. And four days ago, for a short while, there was only a single share available to short. The stock currently boasts an overall short squeeze score of 88 out of 100. All three factors make it clear that TUP stock’s growth is being driven by short squeeze momentum.
It makes sense that TUP stock would catch the eye of retail investors. Like other meme stocks, it has fallen so far that Wall Street has written it off, leading to increasing attention from short sellers. The last time the company made headlines, it announced restructuring plans, sending shares down. Since then, there hasn’t been any good news to reassure investors that it is making progress.
That said, it should be noted that Tupperware Brands is currently falling, as is social media sentiment toward it. According to Ape Wisdom, mentions of TUP stock have dropped 40% in the past 24 hours, and upvotes across various platforms have declined by 77%. Only the number of mentioning users has increased. This suggests that while interest from the r/WallStreetBets crowd rose recently, it may be falling just as quickly. As of now, it is unclear if the TUP stock short squeeze will continue, but it does not seem likely.
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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.
