The Helbiz Inc (NASDAQ: HLBZ) stock price jumped 44.49% despite the lack of new announcements from the micro-mobility company. Due to the lack of new releases, we must look at the company’s previous announcements to make sense of today’s rally in HLBZ stock.
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The last significant announcement from Helbiz was regarding Helbiz Kitchen, one of its subsidiaries, which had just opened its first US location in Santa Monica, Los Angeles. The news barely affected the company’s stock price; hence, it is unlikely that investors would be reacting to the release now. Therefore, we must look elsewhere for a trigger behind today’s rally.
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Today’s rally could also be an attempt by retail traders to squeeze out short sellers who have been shorting Helbiz stock since August 2021. According to a recent report issued by the company, over 2.37 billion Helbiz shares were sold short since August 2021, with an average selling price of $1.14.
Retail investors may have realised that there is an opportunity to trigger a short squeeze and force the institutions to incur losses in their positions. Helbiz had been investigating illegal shorting of its stock when the report was issued.
Investors will be interested in seeing if today’s relay will transform into a sustained uptrend going forward as more investors join the short squeeze. However, there are no guarantees that we will get such an uptrend since it depends on the buyers outmaneuvering the sellers.
Helbiz has other concerns since its shares are trading below the Nasdaq’s requirement of $1.00. The company recently got a reprieve from the Nasdaq, which extended the deadline for the firm to regain compliance with the minimum stock price requirement.
However, Helbiz has yet to announce a reverse stock split, indicating that the firm hopes its stock price will rise naturally. Again, many hope that Helbiz shares will rally higher as retail traders jump on the stock and push its price higher.
Over 23.39 million Helbiz shares had changed hands at the time of writing.
*This is not investment advice.
The Helbiz stock price.
The Helbiz stock price jumped 44.49% to trade at $0.20, from Tuesday’s closing price of $0.14.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.