GEO - Why The GEO Group Stock Tanked 17.5% at the Open Today
Shares of real estate investment trust (REIT) The GEO Group (NYSE: GEO) fell a quick 17.5% or so as trading got underway on June 10. But you can't look at today's price action without considering the price moves yesterday, when the stock rose around 70% at one point before giving up most of that gain to end the day higher by around 28%. Today's early drop was just a continuation of the pullback.
The big story here is that The GEO Group has gotten caught up in the Reddit message board mania that's quickly entranced Wall Street. With a sizable number of investors shorting the stock , essentially betting it will fall, it was highlighted as a short-squeeze candidate on Reddit. The goal is to quickly increase the stock's price to force short-sellers to cover their positions in order to limit their losses.
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Why The GEO Group Stock Tanked 17.5% at the Open Today