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Wayfair (NYSE:W) stock is on the move Monday and it could be investors preparing for a short squeeze of the e-commerce company’s shares.
Investors will note that short interest in W stock is sitting at 32.2%, which makes it a candidate for a short squeeze. Adding to that, we’re already seeing heavy trading of the company’s stock. That’s another sign that a short squeeze is happening, or already underway.
As of this writing, more than 16 million shares of W stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 4.7 million shares.
Other W Stock News
Adding to this, a short squeeze of a stock can also often follow other news about the company. In the case of Wayfair, there’s a couple of bits of news that could be acting as a catalyst for a short squeeze and today’s stock movement.
First off, Wayfair is laying off employees as it looks to cut costs. This has the company reducing its headcount by 1,000 workers. The e-commerce company is doing this as sales demand has dropped recently.
Following that job cuts news, Wayfair got upgrades from analysts at JPMorgan and Bank of America. That’s another positive for holders of the stock and could be helping with a potential short squeeze. Also, investors will keep in mind that the Bank of America analyst did a double upgrade for W shares.
W stock is up 24.7% as of Monday morning.
Investors looking for more of the latest stock market news on Monday are in luck!
We’ve got all of the hottest stock stories traders need to know about today! A few examples include the most recent news affecting shares of Nikola (NASDAQ:NKLA), Plug Power (NASDAQ:PLUG), and Intelligent Bio Solutions (NASDAQ:INBS) stock today. You can read about that news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.