SOS Limited (NYSE: SOS) shares are skyrocketing Wednesday despite a lack of any fundamental news from the company.
SOS On Uneven Ride: Shares of SOS, which provides cloud-based emergency services to businesses and individuals and have also diversified into cryptocurrency mining, have been volatile for most of 2021.
After starting the year at $1.44, the stock took off in mid-February and rose to a high of $15.88 on Feb. 17. The strength emerged out of its link with cryptocurrencies, which have been on a tear this year.
The stock pulled back from the high after a short seller called out the stock for being a “shell game from China.”
Reddit Crowd Reigniting Momentum? A post on a Reddit thread late Tuesday, which has since then been deleted, called upon traders to buy the stock to initiate a short squeeze over the next five trading days.
“This will require everyone to participate. Whether it is 10 shares, or 10,000. We need your Diamond hands there,” the post said.
The Redditor pointed out that 20% of the float is short.
Delving on the fundamentals, the post said SOS will be installing its third batch of mining rigs, by April 14. The Redditor called upon fellow retail traders to accumulate shares before the PR is out next week. The post claimed that a mass buying is coordinated for Wednesday.
In premarket trading, SOS shares were jumping 31.5% to $5.92.
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