Redbox Entertainment Inc. (RDBX) provides consumers access to a wide range of digital and physical media content. The company operates a rapidly expanding digital streaming service that offers ad-supported (AVOD), paid movies from Hollywood studios, hundreds of content partners, and over 130 free ad-supported streaming television channels (FAST).
The stock surged 107.5% on July 26 from the July 22 level on speculation over its potential short squeeze. The speculations were triggered by weak prospects of Redbox’s DVD rental kiosks, which contribute 90% of the company's revenues. Analysts’ skepticism about the sustainability of this business as streaming continues to gain dominance made this stock a short-selling target.
