1-800-FLOWERS stock surged 14.6% after being targeted by retail traders due to high short interest, creating a potential "short squeeze." The rally came amid a positive backdrop for the consumer retail sector and upbeat retail sales data easing economic worries. The stock has been volatile, with 31 moves greater than 5% over the last year, but is down 7.9% since the beginning of the year.
In a move reminiscent of the 2021 meme stock frenzy, retail traders have pushed 1-800-FLOWERS stock (FLWS.O) to a 14.6% surge, creating potential for a "short squeeze." The rally comes as the consumer retail sector enjoys a positive backdrop and retail sales data eases economic worries.
The stock, which has a short interest of 71.66% of its free float, jumped 14.6% on Wednesday, adding to its volatility. Over the past year, 1-800-FLOWERS has experienced 31 moves greater than 5%, but it remains down 7.9% since the beginning of the year.
The latest rally follows a trend of retail traders targeting heavily shorted stocks. Companies like Krispy Kreme (DNUT.O) and GoPro (GPRO.O) have also seen significant price movements due to high short interest. According to Reuters [1], nearly a quarter of U.S. stock market orders from retail traders have been attributed to these highly shorted names.
The positive economic indicators, including retail sales data, have likely contributed to the bullish sentiment. The U.S. Census Bureau reported that retail trade sales in the United States rose by 0.6% in June, exceeding expectations [3]. This growth is a positive sign for the consumer retail sector and helps alleviate economic concerns.
The 1-800-FLOWERS stock's rally could be attributed to several factors, including its high short interest and the overall bullish sentiment among retail traders. However, it is essential to note that the stock's volatility and the potential for a short squeeze could lead to further price swings.
In summary, the 14.6% surge in 1-800-FLOWERS stock reflects the growing influence of retail traders in the market. The positive economic indicators and high short interest have contributed to the rally, but investors should remain cautious due to the stock's volatility.
References:
[1] https://www.reuters.com/business/retail-consumer/highly-shorted-krispy-kreme-gopro-surge-latest-meme-stock-frenzy-2025-07-23/
[2] https://www.nasdaq.com/market-activity/stocks/flws/financials
[3] https://www.forexfactory.com/news/1351777-us-retail-sales-up-by-06-in-june
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