How Redbox became a Wall Street darling once again
But Redbox is back. It’s built its own A quick look at the RDBX subreddit shows that there the company is getting support from individual investors who are buying the stock in order to “squeeze” the shorts. When a heavily shorted stock rises, that inflicts more pain on short sellers. That’s because short sellers borrow shares and then sell them with the hopes of buying them back at a lower price before returning them. They pocket the difference as a profit. But if the price goes up, the shorts can lose a lot of money.Some fans on Reddit are predicting wildly higher prices for Redbox. There’s even the now obligatory reference to Redbox as a MOASS –— Mother of All Short Squeezes. (That same acronym was used to tout GameStop and AMC too.)The problem with short squeezes is that they rarely last long. Redbox is now quickly losing momentum. The stock fell more than 10% Thursday to around $9 and is now down about 40% from a recent high of just under $15 a share in mid-June. The Redbox squeeze may have been fun while it lasted, but make no mistake: the company is not the next Netflix or Disney.
