Here’s why Support.com is up more than 100% on Friday morning

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is a News Reporter at Invezz covering the European, Asian and North America stock markets. Wajeeh has 5… read more.
on Aug 27, 2021
  • Retail traders push Support.com stock up more than 100% on Friday.
  • Support.com will complete reverse merger with Greenidge in Q3 of 2021.
  • The stock is suitable for short squeeze because Wall Street is betting against it.

The meme stock phenomenon that started with GameStop and AMC Entertainment diversified into several other stocks and even cryptocurrencies over time. The latest push from the retail investors came this morning for Support.com Inc (NASDAQ: SPRT) – establishing that retail trading is not over by a long stretch.

Support.com to merge with Greenidge Generation Holdings

Support.com stock is currently up 100% on Friday morning. The price action is not attributed to fundamentals and is related entirely to the company gaining enormous traction on the social media platform for investors and traders, StockTwits.

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Earlier this year in March, Support.com announced a reverse merger with Greenidge Generation Holdings. The privately held company crowns itself as the United States’ first Bitcoin transaction processor that is 100% carbon-neutral.

Support.com traditionally notes a daily trading volume of roughly 8.9 million. On Friday, more than 100 million shares have been traded already.

Upon completion of the transaction expected in Q3 of 2021, the California-based technical support company that serves both businesses and consumers will turn into a wholly-owned subsidiary of Greenidge.

Support.com has been getting popular on Reddit

Support.com has also been getting popular on Reddit in recent days. One post, in particular, claimed it could see the “mother of all short squeezes”.

“The major short HF is not covering because they have a hedge with Series A stock, but the hedge only works post-merger. If we squeeze them to a stock price where they can no longer meet their margin requirement BEFORE the merger, the MOASS will take place,” the post read.

The Nasdaq-listed company makes up for a great target for a short squeeze because Wall Street is heavily betting against it. As of August 13th, over 67% of its float or more than 25% of its outstanding shares were sold short.

On a year-to-date basis, the stock is now up about 1,500% and boasts a market capitalisation of $842 million.

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