If they could, a faze stock short squeeze could be devastating for the aggressive short sellers. The big question is the massive Faze social following a sleeping giant and can those followers be activated and motivated in a short squeeze scenario? R/Faze has just 6,000 members, and according to Ape Wisdom which tracks stock mentions across the major investing, trading and finance subreddits (including WallStreetBets), Faze is not even in the top 100 most mentioned stocks. However, on Reddit – the home of ‘Apes’ who love nothing more than pumping their chests in the face of institutional short sellers – it appears Faze is yet to gain major traction. Could the Faze social following play a role?įaze enormous Gen Z and Millennial social following would seeming give a coordinated short squeeze the type of velocity that has never been seen before.įaze biggest social media presence is across TikTok (105m), Instagram (11.7m), YouTube (8.7m), Twitter (5.7m) and Twitch (500k). In the case of Faze, such a gamma squeeze would ultimately exacerbate a traditional short squeeze, as traders close out their huge (and expensive) short positions and are forced to buy Faze stock to minimize losses. Should the Faze stock price move over $20 and 140% of the Faze equity float would be ‘in the market’.Īt the other end of the the options spectrum are market makers.Īs share prices get closer to strike prices, as the Faze price has been doing in recent days, the short gamma positions of market makers get larger and they will likely buy shares to hedge their exposure and the risk of major losses.
right now – plus-size women’s clothing retailer, Torrid Holdings (NYSE: CURV).įollow Asia Markets on Twitter Could Faze stock see a massive short squeeze?įaze Holdings market cap of US$1 billion, is markedly similar to that of Bed Bath and Beyond before it found itself at the centre of an explosive short squeeze this month.Ĭurrently though, the cost to borrow Faze stock is extraordinary, in some cases investors have reported being offered 700%, implying extremely aggressive short selling against the company is taking place.īut such an extreme cost to borrow could become a key factor in an explosive short squeeze – naturally, the higher the cost to borrow, the less inclined shorter sellers will be to hold a loss-making position. The short float is 20% larger than the second-most shorted stock in the U.S. You can see how freshly-listed esports and Gen Z lifestyle media company, Faze Holdings (NASDAQ: FAZE), could become the world’s next big meme stock sensation.īut right now, Faze stock is by-far the most shorted in the United States.Īccording to Bloomberg Data, just over 75% of Faze stock on the market is being sold short by bearish traders.
AMC STOCK SHORT SQUEEZE MOVIE
Now whatĪlong with GameStop, AMC has been the big favorite of WallStreetBets traders, and backers of the world's biggest movie theater chain have taken to calling themselves apes, further establishing the stock's meme status.It’s home to the most popular e-sports players in the world, has Snoop Dogg on its board of directors, and is followed by an army of 500 million social media followers. As of July 15, 19% of the stock was sold short, making it a reasonable target for the WSB traders, but not as blatant as some of the other stocks it has pounced on. But AMC is not as heavily shorted as it once was. The WallStreetBets crowd has traditionally tried to lift share prices through short squeezes, forcing those who bet against stocks to buy back their shares. On Reddit, hundreds of traders touted their bets on AMC in a push to bring the stock back to its earlier heights. It also follows a second-quarter earnings report last week that shows AMC stock recovering from the depths of the pandemic. Like the surge last year, this one was engineered by traders on WallStreetBets.
A rally that started Friday in meme stocks has carried over to today after AMC shares gained 19% on Friday in high-volume trading.
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