Innovative Eyewear (NASDAQ:LUCY) stock is up more than 400% today for no clear reason, a potential hint at a short squeeze effort in the making. Indeed, the “Smart Glasses” maker is surging today, reversing its losses for the year in one swift motion.
What’s going on with LUCY stock today?
Well, other than its stock price, nothing. Indeed, Innovative Eyewear’s jump comes with no pertinent news info related to the company. This may suggest that LUCY stock may be the target of a speculative pump-and-dump scheme to artificially raise its share price. When you consider the company’s limited float of just 8.32 million shares, this makes sense.
A stock’s float refers to the number of shares available on the open market. When a company has a very low float, it indicates that traders are, for whatever reason, buying up large quantities of the stock and not selling.
For Innovative, a company with a low float and low share price, it’s easy to become a target of brazen recreational investors. Reasonably so, prior to today’s jump, LUCY was trading for just 19 cents per share. LUCY is up to 90 cents per share at the time of this writing.
LUCY Stock Becomes a Favorite
Interestingly, there is one small group of traders looking at LUCY stock with hopeful eyes. Indeed, some users on Reddit have been posting about the stock frequently over the past day.
While most users have simply been expressing their surprise at the stock’s surge, regret over having missed out on the jump, or their joy at having sold their positions in LUCY after more than tripling their money, there is one post of interest from about 24 hours ago.
Indeed, in a post by u/Otherwise_Tutor2251, the Reddit user shared their thesis that Innovative’s recent earnings figures may hint at some hidden potential in the penny stock:
“Just putting this out here! $LUCY. The recent earnings reported Units sold increased 150% & Revenue Increased 165% in Q1 2024 vs Q1 2023 per yahoo finance. Public float is 9.2m. This is an actual business that provides tangible products and utilizes ChatGPT in some of their newest products. Has probably reached the bottom? Regardless, the company may have future growth. Whether it runs or increases organically.”
It’s unclear whether the post had any effect on the rally itself, but regardless, it’s uncanny timing by the user ahead of a historic stock surge.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
