Marin Software shares tumbled more than 18% in Wednesday premarket trading After rising for several days.
The huge movescome less than a weekafter the San Francisco-based software firm announced a new integration with Instacart. Following that news,investors doubled the priceof MRIN stock as trading volume surged.
While the integration collaboration is big for Marin — allowing users to manageInstacart ads, something that enables brands to connect with customers more directly at the point of sale — there’s seemingly more going on.
Short Chatter Around MRIN Stock
That “more” is likely the hoard of Reddit’s retail traders, in the absence of any material news regarding the company. In what’s becoming a familiar response, r/WallStreetBets social sentiment on MRIN stock is spiking this morning, asindicated on tracking website Memeberg Terminal.
The increased chatter comes as retail investorsattempt to push backagainst a potential short attack on a stock with ashort ratio of 0.68, according to Morningstar data. Essentially, this means that short traders need under a day to cover their position based on the average three-month volume of MRIN stock. The short volumeratio stands at 22%.
MRIN stock has spent most of the last 18 months bouncing around under $2 a share. On Oct. 21, 2020, Marin stock jumped from approximately $1.50 a share to its then-52-week high of $5.70 in a single trading session. Not only that, but this price surge was accompanied by heavy trading volume.
Over the next few trading days, MRIN stock crashed back to $2.21, shot up to $4.47, and eased back to $2.47. So, our warning from last week still stands: Be aware that this stock is only for folks who can handle a fair amount of volatility.