Is Support.com The Next GameStop? Shares Rallies By Over 50% Thanks To Meme Traders

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Updated: Aug 30, 2021, 15:08 UTC

The shares of Support.com are up by over 50% today as Reddit investors focus their attention on the software support company over the past week.

The shares of Support.com are up by more than 50% today as meme traders flock to the software company.

Support.com Rally By Over 50%

Over the past year, Reddit investors have pumped the stock prices of a few companies, most famously GameStop. The GameStop frenzy affected the stock market towards the end of last year and early this year.

The Reddit investors are not done and have picked up another stock to pump. This time around, it is Support.com. The company is known for providing technical support, and it is a small-cap stock. However, Reddit investors have focused their attention on the stock for the past two weeks, and it has now recorded its eighth-straight day of gains.

SPRT surged by more than 50% over the past few hours, becoming the best performing stock in the market. At the time of writing, SPRT is trading close to the $40 mark, after starting the day trading close to $30 per share.

SPRT stock chart. Source: FXEMPIRE

Over the past seven days, SPRT’s price is up by more than 220%, outperforming every other company in the US stock market. Year-to-date, its performance has also been impressive. SPRT began the year trading at $2.20 per share but has seen its price rally over 1,000% since then.

S3 Partners revealed that at the moment, around 60% of the company’s shares are sold short. This figure is huge considering the fact that stocks in the United States market have around 5% of shares are sold short.

Support.com’s Rally Mimics GameStop and AMC

Support.com’s rally is similar to the ones experienced by GameStop and AMC earlier this year. The shares of GameStop rallied earlier this year, thanks to the coordinated trading on the social media platform WallStreetBets. However, the rally ended in losses for some investors and traders, especially the short-sellers.

During the rally of a stock, short-sellers are forced to repurchase shares so they can limit their losses. This short covering ultimately boosts the stock’s price even higher. The rally was also experienced by AMC a few weeks ago.