Roblox Corporation (NYSE:RBLX) gapped up slightly higher on Monday in contrast to the S&P 500, which opened about 1.3% lower. The stock then back-tested a support zone at $48.13 and bounced up from the level as bulls came in to buy the dip.
Short interest in Roblox has been increasing, and paired with the very high level of insider ownership, these statistics could eventually make the stock a good short squeeze candidate. A massive 82.96% of Roblox’s 392.71 million share float is held by institutions and 18.93 million shares, meaning 6.69%, are held short. The number has increased from 17.77 million shares held short in December.
