Why FaZe Holdings Stock Is Shooting Higher Today
Shares of esports company FaZe Holdings (NASDAQ: FAZE) were soaring in early trading on Tuesday, with exceedingly high trading volume. As of 11 a.m. ET, more than 11 million shares had traded hands, according to Yahoo! Finance, compared to a three-month average of 1 million shares in daily trading volume. FaZe stock was consequently up 19%.
In a nutshell, stocks go up when there are more buyers than sellers. Over the long term, investors tend to buy and hold stocks as their earnings go up, which is why I advocate for investors to focus on business fundamentals. But over short periods of time, traders can be motivated by other factors, and that's what's going on with FaZe stock today.
FaZe generates revenue by monetizing its large esports fan base in a variety of ways, including merchandise and advertising. However, many believe this is a bad business and have shorted the stock, poised to make money if it goes down. According to official data from Nasdaq, nearly 1.4 million shares of FaZe stock were sold short as of Aug. 15.
Source Fool.com
