- NASDAQ:RDBX fell by 12.93% during Wednesday’s trading session.
- Redbox’s time as a meme stock is likely over already.
- Netflix jumps higher as it is linked to Google Advertising service.
NASDAQ:RDBX dropped lower for the third straight day as any momentum from the recent short squeeze has faded as quickly as it arrived. On Wednesday, shares of RDBX sank by 12.93% and closed the trading session at $10.10. All three major indices inched lower on Wednesday after Fed Chairman Jerome Powell addressed Congress. Powell noted that the Fed is determined to get inflation under control, reiterating the Fed’s hawkish stance on the current state of the economy. The Dow Jones fell by 47 basis points, while the S&P 500 and NASDAQ edged lower by 0.13% and 0.15% respectively during the session.
Redbox could already be seeing its spotlight fading as meme stock traders move on to the next stock to squeeze. Although short interest still remains high for Redbox, daily average trading volume continues to trend downwards. On Wednesday, only 8 million shares changed hands compared to the recent average of 21 million shares per day during the height of its mania. Short squeezes rely on both a high short interest and a high trading volume to send the stock higher. Unfortunately for RDBX investors who are looking for another squeeze, that ship may have already sailed.
Redbox stock price
Redbox-rival Netflix (NASDAQ:NFLX) saw its stock surge by 4.67% on Wednesday as the company was linked to Alphabet (NASDAQ:GOOGL) and its Google Ad services. Netflix has been planning to add ad-support to its platform to boost revenues to help its struggling business. While this might not be welcome news to customers, it is apparently being well received by its shareholders.
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