The Helbiz Inc (NASDAQ: HLBZ) stock price rallied 60.3% despite the lack of news releases from the micro-mobility company. Today’s rally was driven by renewed investor interest in the company, as evidenced by the over 49.45 million shares that had changed hands at the time of writing.
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The last significant announcement from the company was on Friday when it revealed that its board had launched an investigation into the alleged short selling of its stock by certain individuals and companies, which had made its stock price artificially depressed.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Retail investors jumped on the opportunity pushing Helbiz stock up over 65% on Friday, followed by today’s rally. The move is morphing into a short squeeze as retail investors accumulate positions in the company forcing short sellers to buy more shares and cover their positions.
Apart from the ongoing short squeeze, Helbiz has made significant strides this year, including discontinuing its operations in non-profitable markets. While the company did not specify which markets it could exit by Spring 2023, it provided the criteria by which it had arrived at its decision.
A lack of solid regulatory frameworks, overcrowded streets, an oversupply of vehicles, and high competition characterise the markets it will be exiting. These factors make it hard for the company to profit in such markets.
However, as Helbiz looks to exit other markets, it is expanding its operations across North America by growing its fleets in cities such as Austin, Orlando, and Honolulu. The company also recently expanded its fleet of e-bikes in Miami-Dade, Florida, amid surging demand.
Helbiz also recently launched a new fleet of e-bikes in Santa Monica, California, to complement its existing fleet of e-scooters and Helbiz Wheels, making its services more accessible to a more extensive customer base in a city that has embraced micro-mobility services.
The company is also on a mission to cut costs as it plans to fire 39 employees to streamline its business further and consolidate its active operations with a focus on its core revenue-generating activities.
Helbiz stock may keep rising if the short squeeze continues. However, there are no guarantees in the markets.
*This is not investment advice.
Helbiz stock price chart.
The Helbiz stock price rallied 60.33% to trade at $0.3266, from Friday’s closing price of $0.2037.
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