What Happened?
Shares of online dating app Bumble (NASDAQ: BMBL) jumped 4.1% in the morning session after data pointed to a potential short squeeze, as the stock rallied amid high levels of bearish bets placed against it.
The move occurred during a broader market rebound for tech stocks. Data showed that short interest in Bumble had recently increased, with bets against the company rising to 12.49 million shares from a previous 11.60 million. This level of short interest represented nearly a quarter of the company's publicly available shares. When a heavily shorted stock's price starts to rise, sellers who bet on a decline may be forced to buy back shares to close their positions and prevent larger losses. This buying activity can, in turn, push the stock price even higher.
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What Is The Market Telling Us
Bumble’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 6.2% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Bumble is down 54.4% since the beginning of the year, and at $3.64 per share, it is trading 57.9% below its 52-week high of $8.64 from February 2025. Investors who bought $1,000 worth of Bumble’s shares at the IPO in February 2021 would now be looking at an investment worth $51.70.
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