Latest news with #meme stocks
Yahoo
3 days ago
- Business
- Yahoo
How meme stock mania is a 'sign of the times'
Retail investors are piling into high-volatility trades, from meme stocks to speculative plays. Stocktwits editor in chief and vice president of community Tom Bruni explains what the activity says about market sentiment and how companies like GoPro (GPRO) and Krispy Kreme (DNUT) can respond. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Meme stocks, we're talking GoPro and Krispy Kreme. When you watch these moves, Tom, is it fun? Is it concerning? What do you make of it? Yeah, it's a bit of both. I think the, uh, it's a sign of the environment we're in. We've had a record rally off the April lows. Most of the major indexes are up 20, 30%. Stocks like Robinhood, Coinbase, Palantir, retail favorites are up 200, 300% in this short period. We're coming off two back-to-back 25% plus years in the S&P. And so, I mean, animal spirits are alive and well. I read a stat today, 70% of the options market volume is on the call side, and 27% of year-to-date volume in trading across the board is coming in stocks under $5. That's even higher than during the pandemic. Because I I I asked that question, Tom, because I can understand some viewers would be watching this and they would be thinking to themselves, well, all of a sudden we're talking about Josh and Tom were talking meme stocks, we're talking about spacks again. Just whether you see this sort of speculative activity and is it a side to you of froth in the market. Yeah. Yeah, typically we see this type of activity towards the latter end of a move. So, again, not calling a market top, but I mean, think about it. We're up 30% in the indices over three months. A lot of great news has been priced in, and I think earning season is kind of bringing the market kind of back into to focus on the fundamentals. Um, and so I think it's just a sign of the times. People, you know, when you see your portfolio going up 25% in three months, you're not really interested in making one or two percent here. You're going for multibaggers, as they like to say online. But I think it's also important to frame the conversation. People are not all in and all out. They are using a portion of their portfolio that is for fun and speculation and, you know, growth, uh, for these opportunities and not necessarily taking the excessive risk that I think a lot of people think of. And when you're watching these moves, Tom, do we have line of sight of of who's in? I mean, is this retail traders? Is it the pros? Is it both? Yeah, what I've been saying is that retail is starting the party and then forcing the institutions to dance. And what I mean by that is the institutions are kind of setting these stocks up for a meme type situation, heavily shorted brand names that like have some fundamental value, but you know, are not going to zero. And then we have sophisticated investors online, retail, using market mechanics against the institutions. So in the situation of calls earlier this week, the stock moved from $11 to $20 in the pre-market. It doesn't take a whole lot of volume on the retail side to be able to move a stock like that. And if you're an institution that's short, uh, or or hedged against that stock, you got to make that move at the open. And so it's kind of a situation where retail is saying, hey, this situation doesn't make sense to us. There's a fundamental case to be made here, and we're going to move the market in our direction and the institutions will have to adjust. Let's say you're a GoPro or Krispy Kreme. Yeah. You see these moves, right? What should be, you think time, your reaction, your response? How should you, if at all, try and take advantage of it? Yeah. I mean, every company with high short interest right now should be thinking about how do we convert conversation and attention into capital and long-term shareholder conviction. The difference between this being a short-term move where the stock just pops and and moves lower is management's ability to go out there, raise capital, uh, get their balance sheets in focus, and really tell a compelling story for shareholders to say, hey, this is not just a trade. We're really turning this business around. There's a fundamental reason to be involved here. And I think it's the investor relations departments, the the executives that are using online platforms like Stocktwits, like Twitter, like Reddit, to get their messaging out there and tell a compelling story. Those are going to be the ones that stick around. Those who choose not to engage with retail are likely going to see their stock fall. Let's have another another name I want you to take on Opendoor. Uh, we had EMJ's Eric Jackson on on YFi talking about the name. Take a listen to what he had to say. Yeah. Open door's not a meme stock. This is a real turnaround legitimate turnaround story. It's an opportunity for anybody who missed Carvana. And I missed it at 350. I got in at $15 on Carvana. So I think I do know what to look for in these kinds of situations, um, and I think that this is the ground floor for a move to 82. What what do you make of Mr. Jackson's comments? He's talking Opendoor and he saying, listen, this is a real story. This is a fundamental story. What do you make of that? Yeah. I think individual story aside, I think that's what's kind of attracting people to these situations. They see a company that's beaten down, highly bet against, and there's some glimpse of a fundamental case to be made where somebody can say, you know what? I I kind of believe that. You know, maybe it shouldn't be trading at 82, but maybe it shouldn't be trading at a dollar. And there's a lot of room in between there. And so we're seeing people reassess situations that have otherwise been left for dead. And as retail gets into these names, institutions also have to adjust and, again, I think it's going to come down to the management team of Opendoor. What do they do with this situation? Um, how do they create a compelling narrative? Because right now it's all about the stock price. It's all about what's happening with trading, but what's actually happening with the company? What are they going to do from a strategy perspective to get this back on the right footing? More broadly, Tom, I'm also just interested in the Stocktwits community. How do they feel right now about this market? Where do they stand on this rally after the move we've seen after that April low? Yeah. I mean, it's quite, uh, quite amazing. Throughout the April period, we saw kind of institutions running for the hills on on tariff concerns, but retail was in there buying the dip, and they've been quite aggressive throughout this entire rally. But that said, we're seeing some catch-up plays, uh, you know, come to fruition here. So instead of focusing on a Robinhood or Coinbase that's up, you know, hundreds of percentages already, they're looking at other opportunities. We're looking international. Japan just, uh, just signed a trade deal. Um, you know, Chinese stocks are are set to play catch up if they can get a deal. So people are looking for value. They're still bullish overall, but they're looking for opportunities where, uh, maybe the the puck is going as opposed to where it's been. When I last spoke to you, Tom, I remember, correct me if I'm wrong, but there was a lot of interest, enthusiasm, again, the Stocktwits community on themes like nuclear, um, things like AI, crypto. Are those still front and center? Yeah. Yeah. That's continuing. You're just seeing, uh, money rotate within those themes. So rather than play it directly through Nvidia or directly through the same names, um, they're looking for other opportunities. So lithium stocks, uh, are a big one that I've seen pop off over the last couple of weeks. Um, solar stocks are are catching a bit again. So people are seeing these broader themes and saying, okay, instead of buying the the nuclear energy stock that's already up 400%, maybe I buy a solar stock because I know that there's going to be some energy component to this kind of broader theme. So Last last question, Tom. What about crypto? Is that still a point of interest on the platform? It it's, um, you know, it's kind of spread as risk appetite has, um, kind of widened here. Seeing a lot of meme coins, a lot of interest around Ethereum. There's a couple of treasury, uh, you know, Ethereum treasury companies out there. So, uh, definitely a hot area. I think the next phase for crypto and where people are looking on Crypto Twitter is, uh, stable coins. You know, we've got Circle, we've got Robin Hood making a big, uh, move into staking and stable coins. So I think that's kind of the next leg of this, uh, you know, crypto market rally.
Yahoo
5 days ago
- Business
- Yahoo
Meme stock rally has investors feeling 'invulnerable' as speculative bets power markets at record highs
For retail investors, the summer of 2025 is quickly turning into the latest meme stock moment. Stocks like Opendoor (OPEN), Kohl's (KSS), and Krispy Kreme (DNUT) have replaced yesterday's meme darlings like GameStop (GME), AMC (AMC), and now-shuttered Bed, Bath & Beyond as the latest market curiosities, treating investors to wild price swings with little fundamental backing to explain the moves. Opendoor stock is up more than 300% over the past month and saw a 140% increase in retail trading over the two weeks preceding Friday compared to the previous month, according to data from trading data platform VandaTrack. Even with a roughly 21% decline since the opening bell on Monday, the stock is up more than 50% over the last five days. On Wednesday, Krispy Kreme and GoPro (GPRO) rose by more than 90% and 70% in premarket trading, respectively — the latest entrants in 2025's meme stock redux. Both swung to losses before the bell on Thursday, after coming off intraday highs to close with less-spectacular gains. What's driving the renewed interest in highly speculative bets on names long ago written off by Wall Street? According to Interactive Brokers chief strategist Steve Sosnick, the market environment is simply right for risk. "I think more and more investors are feeling somewhat invulnerable right now," Sosnick told Yahoo Finance. "Everything they've been trying has been working for them. If the basic stuff's working, why not try a bit more speculative stuff?" After a historic drop in stocks following President Trump's early April "Liberation Day" tariff surprise, the stock market has spent the past few months roaring back as worst-case scenarios for trade and the global economy appear less likely. Now, the S&P 500 is routinely hitting record highs, including on Wednesday. For investors who had the stomach to hold in early April, or even buy into the dip, those bets have largely worked out spectacularly well. And the winners haven't only been confined to the meme darlings mentioned above. The risk-on environment has been buoyed by steady belief in the AI trade from investors. Nvidia (NVDA) has seen its stock price increase by more than 90% since its April nadir, while shares in Microsoft (MSFT) and Meta Platforms (META) have grown by more than 40% since their respective April lows. Crypto enthusiasm, which has also gotten a boost from the White House, along with a refreshed IPO market, has seen stocks like Coinbase (COIN), Circle Internet Group (CRCL) and CoreWeave (CRWV) — which recently announced a $9 billion acquisition of Core Scientific (CORZ) — shoot upward by more than 60%, 550%, and 200% since the start of the year, respectively. Robinhood Markets (HOOD), the retail investor-focused trading platform, is up more than 170% on the year. Even SPACs are seeing a resurgence from their 2021 highs, with more than 70 blank-check IPOs and more than $12 billion in issuance recorded since the start of the year, according to data from SPAC-focused hedge fund RLH Capital. Data from Stocktwits shows some 68% of the options market is now in calls, or options for the right to buy a certain security at a certain price — the highest concentration since 2021's meme stock craze. The firm's data also shows more than 25% of all trading volume this year has been in stocks under the $5 share price line. Low per-share stocks were also a staple of 2021's meme stock rally. The origins of the 'meme stock' meme In January 2021, deep in the throes of the pandemic, speculative stock betting by retail traders reached a fever pitch. An explosive rally in shares of GameStop eventually canonized what investors now know as a "meme stock." Spurred by discussion on the subreddit wallstreetbets and the bull case made by one individual investor — Keith Gill, known to redditors as "Roaring Kitty" — GameStop shares swelled by as much as 1,600% in January 2021 before crashing in early February. The rally in GameStop was so strong that it led Gabe Plotkin, founder of the hedge fund Melvin Capital Management, to shutter his fund after the firm's short bets on GameStop went upside down in a "short squeeze" as the stock rallied. An almost equally explosive run-up in AMC stock helped the theater operator stave off the threat of bankruptcy. Four years later, the names are different and the gains may be more modest, but the shape of the rally is similar. Wallstreetbets has been inundated over the past few weeks with posts about a growing basket of names that have been ID'd for potentially massive gains, including Opendoor, Kohl's, GoPro, Krispy Kreme, and BitMine Immersion Technologies (BMNR). As one post from earlier this week on wallstreetbets read, "Tastes like 2021 again. $130K YOLO on $RKT, 99.99% of my account on the line." Rocket Companies (RKT) stock is up about 15% this week. And taking a version of the role vacated by Roaring Kitty is hedge fund manager Eric Jackson. Jackson, who rose to prominence for being an early spotter of Carvana's (CVNA) turnaround, publicly laid out a bull case for Opendoor earlier this month with a price target of $82 for a stock currently trading below $3. 'It could all end tomorrow' And much like 2021, small-cap names grabbing headlines now tend to have a relatively high percentage of their shares on the market sold short. For Opendoor and Krispy Kreme, the percentage of outstanding shares being sold short is sitting at around 21% and 28%, respectively. Meanwhile, Kohl's boasts a whopping 49% short float, which means that just under half of its outstanding eligible shares are being borrowed to bet the company's share price will drop. Some strategists have even suggested this "short squeeze" theme is playing a significant role in the broader market's rebound from those April lows. A notable difference from 2021, however, is that the half-life of trades on new-age meme stock names like Opendoor seems to be shorter than the timelines that ended up sustaining a long retail bull run on GameStop in 2021, Interactive Brokers' Sosnick told Yahoo Finance. "It could all end tomorrow, it could all end in months … Kohl's is not going to suddenly become a great company tomorrow," Sosnick said. "If enough people get on one side of an option trade, it can become self-fulfilling, at least in the short term." This market environment also isn't without risk — and harm — to individual investors that are often swept up in these trades. A study released in June from the CFP Board of Standards found that 57% of Americans have made a poor financial decision based on information they saw online, while 18% have lost more than $1,000 based on online information. "This kind of retail behavior often marks short-term tops," Stocktwits editor in chief Tom Bruni told Yahoo Finance. "When the buzz dies down in these highfliers, we usually see broader market consolidation or a pullback." Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at Click here for in-depth analysis of the latest stock market news and events moving stock prices
Reuters
5 days ago
- Business
- Reuters
Meme stocks pare gains as highly shorted Krispy Kreme, GoPro join the frenzy
July 23 (Reuters) - Investor enthusiasm faded for the latest meme stocks on Wednesday, with shares in heavily shorted Krispy Kreme (DNUT.O), opens new tab and GoPro (GPRO.O), opens new tab closing well below their session highs, while Tuesday's investor darling - department store Kohl's - finished sharply lower. Individual investors have been betting on riskier pockets of the market, including cryptocurrencies and lower-priced consumer-facing stocks, as the broader equity market has soared to record highs recently. Shares of doughnut chain Krispy Kreme, nearly 32% of whose free float has been shorted, ended up 4.6% at $4.32. Earlier the stock hit a session high of $5.73, with a record trading volume of more than 151 million shares. The stock had rallied nearly 27% on Tuesday with 44 million shares changing hands compared with the 5.28 million average for the last 50 days. Earlier on Tuesday, Krispy Kreme was among the top trending stocks on Stocktwits, a retail investor-focused social media platform. Action camera maker GoPro's shares rose 12.4% to $1.54 after earlier hitting $2.37, the highest level since late March 2025. Plant-based meat company Beyond Meat (BYND.O), opens new tab added 1.4% after earlier hitting $4.82, its highest level since December 4. Many individual investors did well by taking risky bets when institutions were selling in April, when equity volatility erupted over uncertainty around U.S. tariff policies, according to Steve Sosnick, chief strategist at Interactive Brokers, which has a high number of retail customers. 'That has given them the financial wherewithal and the psychological temperament to seek out risky situations. They were rewarded handsomely for embracing risk at a very risky time," Sosnick said. "Now they're extending it to search for high-risk situations that have potentially high returns.' With the paring of gains on Wednesday, Sosnick said the staying power of the meme-type rallies seemed to be shrinking. "People realize that there isn't a fundamental reason for these rallies to be occurring. They're simply occurring at the intersection of social media and the stock market," he added. Daniela Sabin Hathorn, senior market analyst at wrote that risks are as stark as the rewards in meme rallies. "These surges are often disconnected from company fundamentals and can reverse violently. Traders who chase momentum without an exit strategy may be caught in painful drawdowns," she said. The current market revived memories of the Reddit-driven meme stock frenzy of 2021, when amateur investors pushed up shares of video-game retailer GameStop (GME.N), opens new tab and cinema chain AMC (AMC.N), opens new tab, burning hedge funds that were on the other side of the trade. Opendoor Technologies (OPEN.O), opens new tab, an e-commerce platform for residential real estate, was among the first stocks involved in the current meme wave. While it is still up almost 330% for July, it lost 20.5% on Wednesday to close at $2.29, a far cry from a July peak of $4.97 - its highest level since August 2023. Some market participants attributed the Opendoor rally to posts last week by EMJ Capital founder and portfolio manager Eric Jackson, who said his hedge fund took a position in Opendoor and projected it would hit $82 in the longer term. "When I first started tweeting about Opendoor last Monday afternoon, I definitely wasn't thinking it was going to be considered a meme stock," Jackson said on Wednesday. Social media platform Reddit's r/WallStreetBets, the 40th largest subreddit with 19 million members, was abuzz with screenshots of bullish bets on Opendoor and Kohl's by amateur traders. Department store Kohl's (KSS.N), opens new tab shares surged 37.6% on Tuesday with the highest daily inflow from mom-and-pop traders in about three years, Vanda Research data showed. But on Wednesday the stock appeared to exemplify the fickle nature of meme stocks with a 16% decline on the day. Online gifts retailer (FLWS.O), opens new tab, with a short interest on 71.66% of its free float, ended up 4.4% after jumping about 27% earlier in the day. According to Ortex research, moves in Beyond Meat and were most susceptible to a short squeeze. A short squeeze occurs when investors who had sold borrowed shares in the hopes of making money from a share price decline are forced to buy shares to close their losing positions. Another notable mover without news announcements on Wednesday was Pineapple Financial , which rallied 70% to $5.95. More than 25 million shares changed hands versus the previous session's volume of less than 1 million shares. The stock hit a session high of $9.53 earlier on Wednesday.
CTV News
6 days ago
- Business
- CTV News
Krispy Kreme, GoPro and Beyond Meat surge as the latest meme stock revival rolls on
The Krispy Kreme logo appears above its trading post on the floor of the New York Stock Exchange, Monday, May 9, 2016. (AP Photo/Richard Drew, File) NEW YORK — As the stock market pushes into record territory and some companies trade at lofty levels, investors are once again looking for bargains among some of Wall Street's beaten down companies. The latest so-called meme stocks include doughnut maker Krispy Kreme, camera maker GoPro and plant-based meat maker Beyond Meat. Each company is surging Wednesday. The gains follow sharp jumps recently for department store Kohl's and the online-based real estate company Opendoor Technologies. The companies have been mostly struggling to notch profits. Wall Street defines a meme stock as a stock that gains significant popularity and trading volume, primarily driven by social media hype and online communities, rather than the company's fundamental financial performance. Think GameStop and Blackberry in 2021, and a few subsequent instances. Often, meme stocks are initially the target of 'short sellers,' or investors betting against the stock. If other investors start buying the shares and boost the price, that could prompt the people betting against the stock to buy more shares to cushion their own losses. Sugar rush Krispy Kreme jumped 25 per cent on Wednesday, adding to its 26.7 per cent gain a day earlier. The company has seen several years of falling profits and revenue. Wall Street expects it to post a loss for 2025. During its last earnings update, the company pulled its financial forecast for the year as it reassesses its partnership with McDonald's. Shaky frame GoPro jumped 60 per cent on Wednesday to follow its 41 per cent gain on Tuesday. The company last posted an annual profit in 2022 and revenue has been sliding for several years as it faces more competition in a market for smartphone cameras that it once dominated. Wall Street is forecasting that the company will eke out a slight profit in 2025. 'Beefy' gains Beyond Meat gained 10 per cent on Wednesday and is now up more than 30 per cent for the week. The company has been struggling for years and has yet to notch an annual profit since going public in in 2019. The company warned in its latest earnings update that it is 'experiencing an elevated level of uncertainty' and it pulled its financial forecasts for 2025. Losing momentum Investors who buy now are betting that the momentum will continue, but it can shift suddenly. Kohl's, which operates 1,600 stores across the country, reversed course on Wednesday and slipped about nine per cent, although it is still up about 36 per cent this week. It is wrestling with a number of challenges including a revolving door of CEOs and weak sales. Opendoor Technologies shares also faded, falling 21 per cent and to give back most of this week's gains. The stock nearly tripled last week. The stock's recent gains came as hedge fund manager Eric Jackson touted the stock on X. Opendoor faces a tough housing market, with soaring interest rates and a low supply of homes making purchases and sales difficult for both homebuyers and homeowners. Meme stock history The original meme stock is video game retailer GameStop. In 2021, the company was struggling to survive amid the switch from discs to digital downloads and major investors were betting against the company. Investor Keith Gill, better known as 'Roaring Kitty,' rallied other investors to join him in buying up thousands of GameStop shares, changing the trajectory of the stock. GameStop had been trading under US$5 heading into 2021. The stock is trading around $24.50 on Wednesday. The initial meme stock craze eventually fizzled out. But the frenzy occasionally reignites, as seen the past few years with sudden gains for BlackBerry, Bed, Bath & Beyond, and Chewy. It took just four weeks in 2021 for GameStop's stock to go from less than $5 to more than $120. But it has yet to touch that price again. Blackberry quickly jumped from less than $7 to nearly $30 in early 2021, but the gains were shaky and trimmed back within a year. It is now trading at about $4. ___ AP Business Writer Anne D'Innocenzio contributed to this report. Damian J. Troise, The Associated Press
Forbes
6 days ago
- Business
- Forbes
Kohl's Stock Up 33%. Locafy LCFY May Be Next Meme Stock
Suddenly, meme stocks — made famous by the 2021 GameStop saga — are back. CHONGQING, CHINA - JUNE 08: In this photo illustration, the logo of GameStop Corp. is displayed on a ... More smartphone screen, with the company's iconic red and black branding visible in the background, on June 08, 2025, in Chongqing, China. GameStop is an American video game, consumer electronics, and gaming merchandise retailer that gained widespread attention during the 2021 retail investor frenzy, and continues to be a focal point in discussions around meme stocks and market volatility. (Photo illustration by) Getty Images Shares of Kohl's and Opendoor Technologies have soared after Reddit and X hosted posts from investors aiming to drive up the heavily shorted shares, according to the Wall Street Journal . Locafy Limited — a SaaS company 'specializing in proximity-based search engine optimization for local businesses,' notes RTT News — says its U.S. AI partnership will help boost revenue in the $600 billion SEO market. Locafy — nearly 60% of its shares are sold short, according to the Journal — also faces risks including a going concern letter from its auditor, according to an SEC filing, liquidity issues, and a September 2025 deadline to retain its Nasdaq listing, according to a company release. Suddenly, Meme Stocks are back. For example, Opendoor Technologies — which traded at about $1 a share last week — has since soared 144%. On July 14, hedge-fund manager Eric Jackson said in an X post 'that his firm EMJ Capital has taken a position in the stock,' the Journal reported. On July 22, shares of department store chain Kohl's — which has suffered from declining revenue and hosts about 50% short interest — took off. That's the day a subreddit forum user named Hot-Ticket9440 wrote of Kohl's 'Let's goo!!,' the Journal reported. This raises the question: Where will the Meme Stock crowd go next? One place to look could be Locafy Limited — whose shares have lost 91% since going public in March 2022. Locafy — which last published financial statements for its September 2024-ending quarter — posted a 28% decline in revenue to $518,000 while posting a $36,000 loss. While Locafy also suffers from the other risks listed above, there is potential good news for bulls. For example, at the end of June Locafy stock soared 300% after reporting a partnership to provide 'digital business listings for approximately 10,000 U.S. end users,' RTT News reported. While the shares have since lost about half their peak value, the company's 60% short interest suggests Meme Stock potential. I asked Locafy the following questions: Why is Locafy stock down 91% since March 2022? What is the name of the U.S. company Locafy partnered with in June to make its service available to "approximately 10,000 U.S. users"? How much additional revenue will this partnership generate for Locafy? What are the terms of Locafy's partnership with How much additional revenue will this partnership generate? Why has Locafy not filed an interim balance sheet and not issued quarterly financial statements for the December 2024- or March 2025-ending quarters? Why is almost 60% of Locafy's stock sold short? I will update this post if I receive a reply from Locafy. Founded in in 2009, Locafy is a digital publisher and SEO agency. With a market capitalization of $7.31 million, the company's digital properties include Hotfrog, AussieWeb, and SuperPages and its SEO Agency provides services for third-party digital properties. Here are three tailwinds that could boost Locafy's revenue: Expanding SEO software market. The global SEO software market is forecast to grow at a 13.5% compound annual rate from $74.6 billion in 2024 to $154.6 billion by 2030, noted Precedence Research . The global SEO software market is forecast to grow at a 13.5% compound annual rate from $74.6 billion in 2024 to $154.6 billion by 2030, noted . Local search demand. Since Locafy's strengths lie in local search optimization, the company could benefit from growth in this segment. That's because 46% of Google searches having local intent and 76% of consumers visiting a business within a day of conducting a local search, noted seoprofy . Since Locafy's strengths lie in local search optimization, the company could benefit from growth in this segment. That's because 46% of Google searches having local intent and 76% of consumers visiting a business within a day of conducting a local search, noted . Recent strategic partnerships. In June 2025, investors responded favorably to Locafy's announcement of a strategic partnership with a leading U.S. online reputation and review management platform, potentially expanding its reach to approximately 10,000 end users in real estate and mortgage sectors, noted RTT News . In addition, Locafy announced in July a partnership to resell review management platform in the Asia Pacific market, according to a company release. Such partnerships have already generated more than '$35,000 in new monthly recurring revenue while reducing costs by $25,000,' reported Stock Titan . Why Locafy Stock Could Fall In addition to the going concern qualification of Locafy's financial statements and the September 2025 deadline so submit a compliance plan to avoid delisting, Locafy is facing five powerful headwinds, including: Liquidity Concerns : The current ratio of 0.92 indicates potential difficulty in meeting short-term obligations. Combined with negative working capital and declining revenue, this creates significant financial stress. : The current ratio of 0.92 indicates potential difficulty in meeting short-term obligations. Combined with negative working capital and declining revenue, this creates significant financial stress. Algorithm dependency. Locafy could struggle to produce good results for clients and maintain revenue if Google changes its search algorithm, noted my June Forbes post. Locafy could struggle to produce good results for clients and maintain revenue if Google changes its search algorithm, noted my June post. Intense competition . With only 26 employees, Locafy's limited resources make it difficult for the company to compete with SEO software rivals such as SEMrush, Moz, and BrightLocal, notes CB Insights . . With only 26 employees, Locafy's limited resources make it difficult for the company to compete with SEO software rivals such as SEMrush, Moz, and BrightLocal, notes . High volatility. With a beta of 1.82, Locafy's stock price is 82% more volatile than the S&P 500. The company's shares have fluctuated between 23% and 45% in a single day and the stock's 52-week trading range is a whopping $2.51 to $13.98, noted Stock Analysis . With such a heavy short interest, how many posts along the lines of Skip Tradeless's July 22 X missive — '$OPEN has GameStop vibes written all over it' — would it take for shares of Locafy to rise? Disclosure: I have no financial interest in the securities mentioned in this post.
