Why Marijuana Stock Agrify Soared Then Plunged Today
Cannabis stock Agrify (NASDAQ: AGFY) went off on a wild roller coaster Thursday, plunging double digits soon after the markets opened, then recouping all those losses, only to tumble 9.1% again by the close of trading today.
It's been one heck of a week for Agrify so far, with an analyst positing a huge price target on its shares, and the stock surging by double digits on Aug. 18 on heavy volumes. Is it a short squeeze? Possibly.
Almost 1.2 million shares of Agrify were held short as of July 30 versus only 600,000 a month ago. That's the perfect setting for a stock to soar as short-sellers race to exit their positions, driving the stock higher. That's the only reasonable explanation why Agrify shares soared almost 24% on Aug. 18 and were swinging in all directions today. A stock, especially a small cap, is typically volatile on such days.
Source Fool.com
