2023-06-10 08:56:00 ET
Funny things can happen when the market gets too worked up about something, and the emotional pendulum swings too far in one direction. Investors saw this work against them when a euphoric market in 2021 turned into a fearful bear market in 2022: Some stocks fell as much as 95%.
Artificial intelligence lending company Upstart Holdings (NASDAQ: UPST) was arguably the poster child for this shift. The stock soared as high as $390 before crashing as low as $12, a remarkable swing in price and sentiment.
The stock is now up 150% since May. Why? The pendulum swung too far again, and heavy short-selling created a short squeeze . Can this continue, or is the momentum about to fizzle out?
For further details see:
This Stock's 150% Short Squeeze Has More Juice Yet