IZEA Worldwide (IZEA) Stock Rockets As Shorts Run For Cover

IZEA Worldwide IZEA Stock News

IZEA Worldwide Inc (NASDAQ: IZEA) is flying in the market this morning, trading on gains of more than 100% early on. While the company hasn’t issued any news today, news issued a couple of days ago seems to be the catalyst that triggered a short squeeze. Here’s what’s going on:

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IZEA Stock Rockets As Investors Think About COVID-19 Implications

COVID-19 has changed several things, even outside of the idea of staying home. One big thing that has changed is the way that consumers shop and think of brands. As such, navigating marketing in a COVID-19 pandemic is difficult.

Recently IZEA Worldwide said that it will hold an event to show marketers how its technology can assist in the navigation of the marketing landscape. The company’s technology pulls data from millions of social influencers, giving marketers key insights that can make them successful.

This is a very important tool. After all, marketers are struggling, and if this can really help to lead to marketing success, even amid a COVID-19 pandemic, it will prove to be truely valuable.

The Short Squeeze

For a period, there has been pretty heavy short volume when it comes to IZEA stock. This set the stage for the short squeeze that we’re seeing now.

With the positive news, IZEA has been ticking up in the market for a couple of sessions. Of course, when a stock’s value goes up, those who have shorted the stock start to realize losses. Over time, this can lead to a flood of short sellers racing to cover their positions, or buy shares at market value to cut their losses and close the positions.

Ultimately, this causes heavy increases in volume, and if enough shorts start to run for cover, the value of the stock can climb by hundreds of percents. This seems to be what’s happening with IZEA stock as we speak.

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