Priceline (PCLN) went from $427 to $464, a $37 move over night. Ouch for those who were short and joy for those who were long. It’s always a gamble to short in and around earnings with high flyer stocks that can jump or drop in big ways when they report. Nobody wants to gets squeezed if they’re short.
And just so we have this clear, here’s the good old definition of a short squeeze: A short squeeze results when the price of the stock rises and investors who short-sold the stock rush to buy it to cover their short position. As the price of the stock increases, more short sellers feel driven to cover their positions.