What Is a Short Squeeze and Why Should You Care?

By Travis Hoium – May 17, 2024 at 8:29AM

NASDAQ: SPWR

SunPower

Market Cap

$586M

Today's Change

(-1.91%) -$0.07

Current Price

$3.34

Price as of May 31, 2024, 4:00 p.m. ET

There were some big stock moves this week and short squeezes are to blame.

Dozens of stocks moved wildly this week because of what's known as a short squeeze. But what is a short squeeze and why can it cause a stock to pop 100% in a day? Travis Hoium explains in this video.

*Stock prices used were end-of-day prices of May 15, 2024. The video was published on May 16, 2024.

Travis Hoium has positions in Robinhood Markets and SunPower. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.