The shares of this company have soared more than 200% in a week
According to CNBC, mentions of the company have risen 66% since last week on the Reddit subforum called WallStreeBets.
Shares of a tech support provider called Suport.com took off in a matter of eight days thanks to push from Reddit sub-operators. The assets of the company 347%, according to CNBC .
According to the US media, this can cause the formation of a strangulation or "short squeeze" of short positions, that is, rapid growth that moves short investors to hedge their positions by acquiring more shares to avoid losses, which in turn it causes the price of assets to rise.
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Suport's shares rose 38.2% Monday to $ 36.39 apiece, posting their eighth consecutive day of earnings.
According to CNBC , mentions of the company have risen 66% since last week on the Reddit sub-forum called WallStreeBets.
This situation is very similar to what happened with GameStop, a US retailer of video game products, electronics and consumer games, in January of this year. What caused losses to investors in short.
- Find out more: GameStop shares soar on Wall Street because of Reddit