XpresSpa (XSPA) Stock Is Gearing Up For A Short Squeeze

XpresSpa Group Inc (NASDAQ: XSPA) has had it pretty tough this month, with the stock falling more than 20% so far. However, the declines seem to be setting the stage for a strong opportunity as the stock gears up for a short squeeze.

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XSPA Stock Is Getting Ready For A Short Squeeze

As mentioned above, XpresSpa hasn’t had the best of months. Over the past 30 days, the stock has given up nearly $1 per share as short sellers take control. As we speak, short volume is sitting at about 17%.

With such high short volume, it wouldn’t take much to trigger a short squeeze here. Remember, when a stock starts to move in the upward direction, short sellers begin to lose money. So, the exit their positions, which forces them to buy shares to return to their broker. This leads to strong volume and more gains, and it’s likely coming for XSPA.

All it would take is a semi-positive press release or an opinion among the average retail investor that the stock has fallen to support. If either of these events happen, the stock will start to work its way upward, likely acting as the start of a short squeeze.

XSPA Beyond The Squeeze

The coming short squeeze is likely to be a big play, but it’snot the only reason to look at XpresSpa. Let’s not forget that the company is working to achieve its goal of putting COVID-19 testing centers in airports across the United States.

So far, the company has an active pilot in one of the most popular airports in the world, JFK International. During the pilot, testing is being made available to airport staff and other workers that support the continued operations of the airport. Howeever, if things go well, this could quickly be transitioned to allow testing for travelers.

Moreover, when things go well for a leader in any sector, others tend to follow. Should all go well at JFK International, it would catipult the company’s plans, making it more simple to get testing centers into other airports. So, the long term value of XSPA is becoming hard to ignore.

Final Thoughts

Short squeeze events are always fun, and there’s likely to be a short squeeze for XpresSpa soon. However, that’s not the only reason to pay attention to the stock.

With the COVID-19 pandemic continuing to strike fear in the minds of consumers across the United States and around the world, XSPA is the only company looking to test travelers inside of airports. The demand here is likely to be increadible, should the pilot test with JFK go well and the idea spread as it’s expected to. All in all, XSPA stock is one to pay close attention to.

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