What goes up, can (and often does) come down. Invitae (NYSE: NVTA) stock is a case in point.
On Aug. 10, shares of the medical genetics company skyrocketed by nearly 247% after Invitae reported better-than-expected second-quarter results. But the very next day, the stock crashed . Invitae has now given up roughly 60% of its big gain.
These gyrations were a textbook example of a short squeeze . Invitae's shares took off as short-sellers rushed to cover their positions after the company announced positive news. This kind of momentum is rarely sustainable, though, as we saw with the stock's subsequent plunge.
For further details see:
Could Another Short Squeeze Be on the Way for Invitae?