Stocks moving on reports of short squeezes can be extremely volatile and investors should consider approaching with caution. The party retailer saw shares jump from around 20 cents to 70 cents on Tuesday on news of talks with lenders. Party City was also the subject of bankruptcy rumors. The meal delivery company was a popular short squeeze candidate in 2022.Īnother name to watch could be Party City Holdco Inc PRTY with shares under $1. Two other stocks to watch could be Blue Apron Holdings Inc APRN, which fell to less than $1 a share. Shares can often move on any positive news of restructuring, new loans or plans to fend off a bankruptcy declaration. Why It’s Important: Short squeeze targets continued to attract investors as high short interest and a high cost to borrow on shares can often lead to short-term large upward movement for stocks with enough buyers getting involved in the stock.īankruptcies can wipe out values for companies but sometimes it can take months for the move to $0 to happen and traders often capitalize on the high volatility. Related Link: Ambrx Biopharma, PaxMedica And 3 More Short Squeeze Stocks That Could Soar This Week Carvana saw shares highly volatile at the end of 2022 with reports lenders were working on plans to restructure the company.īed Bath & Beyond was also the subject of recent rumors that the company was preparing to declare bankruptcy. Short interest increased in several of the names as reports of bankruptcy had gone up. Data from Benzinga Pro showed a short interest of more than 20% in each of the four names listed above.
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