The most impressive performance of the current meme stocks rally hasn’t been from GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC). Instead, it’s a from a small electric vehicle startup that most investors likely wrote off months ago.
Prior to this week, Faraday Future Intelligent Electric (NASDAQ:FFIE) spent the past six months falling from more than $1.50 per share to 4 cents. But as the Roaring Kitty rally created a new meme stock surge earlier this week, FFIE stock began to soar. And unlike its meme stock peers, it still has yet to come back down.
Today FFIE stock pushed past $1 per share and looks primed to continue rising, with shares up 2,700% over the past five trading days.
Is FFIE Stock the Next Short Squeeze?
For the third consecutive day, Faraday Future is making steady progress, passing the $1 mark for the first time since December 2023. FFIE stock is up 60% so far in Thursday trading.
As noted, the meme stock rally sparked by a tweet from influencer Keith Gill (known as Roaring Kitty on social media) seems to have fizzled out. GameStop is down 24% today and AMC is down 15%.
On Tuesday, InvestorPlace writer William White posed an important question: Is a giant short squeeze brewing in Faraday Future? As of now, the answer seems to be a resounding yes. Data from Fintel shows that more than 95% of the stock’s float is sold short. This definitely sets the stage for a short squeeze that could take shares even higher
The Road Ahead
While things look promising right now, this doesn’t mean that Faraday Future has good long-term growth prospects. “The company, which is attempting to build and sell ultraluxury EVs, has delivered a handful of its FF 91 cars,” reports Barron’s. “But it hasn’t achieved the scale needed to operate profitably and is running low on cash.”
Even so, for the time being at least, FFIE stock is still climbing, outpacing the gains of many of its meme stock peers.
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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.
