Bumble (NASDAQ:BMBL) shares surged 4.1% during the morning session, driven by signs of a potential short squeeze, as the stock rallied amid a broader tech stock rebound.
The move came as data revealed an increase in bearish bets placed against the company, highlighting a rise in short interest.
Recent data showed that short interest in Bumble had grown to 12.49 million shares, up from 11.60 million shares previously.
This level of short interest represented nearly a quarter of the company's publicly available shares.
Typically, when a heavily shorted stock starts to rise in price, those who have bet against it may be forced to buy back shares to cover their positions and limit further losses.
This buying pressure can drive the stock price even higher, creating a potential short squeeze.