Company shares take off more than 200% in one week, after being the new target of WallStreetBets investors

WallStreetBets Reddit Investors

The situation would entail a ‘short squeeze’, or throttling of short positions, as was the case with GameStop shares last January.

Shares in technical support firm Support.com show a week of rapid growth, driven by retail investors from a Reddit sub-forum, recalling the takeoff of shares in GameStop and other companies in recent months.

The company’s share price soared 50% on Monday, on its way to its eighth day of increases. The value of the company has jumped 223%  in one week, becoming the subject of interest from a group of Reddit investors.

WallStreetBets Investors

Support.com shares are over- traded in short positions: the level stands at 60% of shares outstanding, according to S3 Partners. An extremely high range of interest from short investors, whose overall average hovers around 5%, notes CNBC.

The media reports signs of the formation of a ‘short squeeze‘, or strangulation of short positions. It is rapid price growth that causes short investors to hedge their positions by buying company shares to avoid losses, which in turn further drives the share price.

Mentions of the company’s label, SPRT, in the WallStreetBets subforum, specialized in this type of campaign, have increased by 66% in the last week, according to measurements by Quiver Quantitative.

This service also notes the increase in retail interest in another company, Vinco Ventures, whose shares registered a 50% rise on Monday after reaching 120% last week.

The coordinated ‘attack’ on the shares of GameStop, a chain of video game stores, last January caused a biweekly jump of  1,500%  in its share price and inflicted losses worth billions of dollars to investors in short positions.