The Short Squeeze Unravels: Why These Consumer Stocks Plunged Today
On the fourth day of an epic short squeeze that began with GameStop (NYSE: GME) and spread to other heavily shorted stocks, the surge finally seemed to be falling apart today. Traders began taking profits, and Robinhood, the no-fee brokerage popular with millennial traders, announced this morning that it would disable buying on a number of these high-flying squeezed stocks, only allowing users to close positions.
That news added to the sell-off already in progress with stocks like National Beverage (NASDAQ: FIZZ), Fossil Group (NASDAQ: FOSL), and Bed Bath & Beyond (NASDAQ: BBBY). As of 11:15 a.m. EST today, National Beverage stock was down 21.8%, Fossil Group was off 37%, and Bed Bath & Beyond had lost 39.2%.
Image source: Getty Images.
Source Fool.com
