Low float stocks can be some of the most volatile stocks in the market. If you mix in a short squeeze, the potential short-term gains in a low float stock can be extreme.
On Monday, Twilio Inc (NYSE: TWLO) announced an $850 million deal to acquire Zipwhip, a company that helps enable businesses to use their existing toll free business phone numbers to text customers.
The ETFMG Alternative Harvest ETF (NYSE: MJ) is down 26.3% in the last three months as efforts to push for federal U.S. cannabis legalization haven’t progressed as quickly in Washington, D.C. during the early innings of the Joe Biden administration as some investors had hoped.
Investors who have owned stocks in the past year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return over the past 12 months is 48.1%. But there is no question some big-name stocks performed better than others along the way.
Low float stocks can be some of the most volatile stocks in the market. If you mix in a short squeeze, the potential short-term gains in a low float stock can be extreme.
The SPDR S&P 500 ETF Trust (NYSE: SPY) traded lower by 1.7% on Wednesday after the U.S. Consumer Price Index rose 4.2% in the month of April, its largest increase since September 2008.
April’s inflation increase exceeded consensus economist estimates of 3.6%.
The iShares PHLX Semiconductor ETF (NASDAQ: SOXX) traded lower by 2.6% on Tuesday morning (although it recovered to end the day slightly positive) and is now down 11% in the past month as a global semiconductor shortage drags on.
Investors are gearing up for a potential jump in inflation rates following an unprecedented $6 trillion in U.S. government stimulus spending since the beginning of 2020.
An extended period of elevated inflation may be great news for banks as long as inflation rates don’t get out of control, according to Bank of America analyst Erika Najarian