Explain This: Yelp Stock Soars 21 Percent In Spite of Lock ExpiryAugust 29, 2012 6:18 pm
We could not. You can try – we spotted this today:
“Shares of Yelp (YELP) were up 21% in midday trading Wednesday as 52.7 million shares were released from post-IPO lockups.
Lockup expirations usually pressure a stock, but in this case it’s resulted in a short squeeze, says First Analysis Securities analyst Todd Van Fleet.
“The stock was declining in the face of the lockup expiration and there was a lot of short activity,” Fleet said. “Then what we’re seeing today probably is a lot of short covering.”
That is, with the stock rising, short-sellers — who are betting that a stock falls — are selling fast in order to limit their losses. Yelp has had a higher-than-usual amount of short interest in its stock.”
Statistics Source: Investors.com