Meme Stock Movers for 9\/13: AMC, Aterian, Camber Energy, Support.com
Markets closed lower Friday and all three major indexes closed lower for the week: the S&P 500 by 1.5%, the Dow Jones industrial average by 2.1% and the Nasdaq Composite by 1.2%. About 30 minutes before Monday’s opening bell, the index futures were all up about 0.6%.
Apple closed down 3.3% on Friday, following a decision in a lawsuit brought by Epic Games accusing Apple of anti-competitive practices. Upon closer examination, the initial reaction that led to the stock’s sell-off does not appear to be as negative as first believed.
We may have another new entrant in the meme stock universe. Aterian Inc. (NASDAQ: ATER), designs and manufactures a variety of products that it then sells to online customers, including Amazon, as well as at its own and other websites. Since spiking to a 52-week high of nearly $49 in mid-February, the stock had dropped by about 80% and closed Thursday at $10.18. The shares added nearly 16% on Friday and traded up about 23.4% in Monday’s premarket session to $14.56.
According to Fintel data, 36% of Aterian’s float is sold short, and the borrow fee for acquiring more is now 86%. The company is the second-best candidate for a short squeeze this week, according to Fintel, which noted, “If short sellers continue to pile in, the price continues to climb, and the borrow fee rate increases, expect margin calls and covering trades from short sellers.”
AMC Entertainment Holdings Inc. (NYSE: AMC) added 16% to its share price last week following the strong Labor Day weekend opening of Disney’s latest Marvel epic, “Shang-Chi and the Legend of the Ten Rings.” The film raked in about $35.8 million more in its second weekend and has led Disney to announce that its remaining new films this year will be released only in theaters with a 45-day window.
The firm with the greatest chance of being attacked by a short squeeze this week is Support.com Inc. (NASDAQ: SPRT). The stock actually dipped by about 5% last week, even including a couple of spikes higher. Short interest in the stock has risen to 74%, according to Fintel. There are just 2.5 million shares in Support.com’s float of 9.9 million shares that are not shorted. Shares plummeted by more than 19% on Friday but traded up about 3% in Monday’s premarket.
On Friday, Support.com shareholders approved the company’s proposed merger with bitcoin miner Greenidge. Details of the merger are forthcoming.
Shares of Camber Energy Inc. (NYSEAMERICAN: CEI) more than doubled last week to close Friday at $1.52. The stock traded down more than 5% in Monday’s premarket. According to short interest data reported last week, short interest in Camber is around 6%. This does not look like a good candidate for a short squeeze, but a reaction to the recent announcement of an acquisition by a subsidiary.
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