Greenidge Generation Holdings (GREE), Support.com (SPRT) Stock News and Forecast: Why did SPRT fall?
- GREE shares spend their second day a lot calmer than the first.
- Greenidge Generation Holdings stock closes higher as the short squeeze fails to materialize.
- SPRT had been a heavily shorted stock with up to 70% short interest.
GREE stock had a much steadier second day of trading than the first one, which saw some typical retail meme stock volatility. Yesterday GREE was more like the rest of the market, which is steady and waiting for quadruple witching on Friday. For a primer on quadruple witching see here. GREE stock had a little pop on the open and traded above $50 as things started to look interesting again. But from there, the stock slid back to the mid $40s and remained there for the rest of the session, closing at $43.50, still in the green for the day.
GREE stock news
Just as a back story GREE was formed from Greenidge Generation Holdings Inc. taking over and merging with Support.com. The latter had traded under Fintech Zoom SPRT and was a meme stock favourite with a large retail following. The stock had exhibited huge volatility and this had kicked off back in March of this year when the deal with Greenidge was announced. Support.com was a good fit for retail traders as it was a facilitator of remote working solutions which grew in popularity during the pandemic. However, Support.com is a much smaller entity despite having a public listing.
After the merger, Support.com becomes a small subsidiary of Greenidge. SPRT shares spiked on the announcement of this deal back in March but went quiet again until retail interest appeared to pick up in August. SPRT stock was circulating around various social media chat sites as the short interest was high, meaning the retail traders decided to try and instigate a short squeeze. This has obviously worked well in other meme names such as GME and AMC, but SPRT was not exactly in the same situation. SPRT stock was to become a much smaller piece of the overall GREE company. There have also been valuation concerns that the SPRT spike had put a much too high valuation on the combined GREE company and investors sold as a result.
GREE 15-minute chart