Tupperware Brands Corp (NYSE:TUP) shares are finally taking a breather after rallying more than 430% in July and kicking off August with gains of approximately 26%. The stock is continuing to see increased retail interest as it has become the latest meme craze.
What’s Going On: The retail-driven short squeeze in Tupperware shares started shortly after AMC Entertainment (NYSE:AMC) shares surged at the beginning of last week. The outsized move in AMC was driven by a court rejection of the company’s proposed settlement with shareholders. New developments in the case led to a pullback in the stock, but Tupperware continued to rally until Wednesday morning.
Tupperware is still trending across various social platforms as traders highlight high short interest. 27.06% of the float is currently sold short, according to data from Benzinga Pro. Tupperware was also among the top stocks to watch on Benzinga’s short squeeze watchlist this week.
Tuesday on CNBC’s “Squawk On The Street,” Jim Cramer noted that the buying doesn’t make a lot of sense.
“I think Tupperware is gonna have to file bankruptcy and yet people are buying it like crazy,” he said.
Related Link: Jim Cramer Warns ‘Look Out!’ After Meme Traders Take Over In July: Why He Says Broader Market Is Spoiled, Tupperware Headed For Bankruptcy
Tupperware is expected to report second-quarter earnings in approximately two weeks, although a date has not been confirmed by the company.
TUP Price Action: Tupperware shares were down 15.6% at $4.54 at the time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.
