Shares of Tupperware (TUP) have surged by about 165% this week and more than 300% over the last month, with no apparent reason behind the sudden increase. The Florida-based container company, which has been struggling with declining sales and even warned of potential bankruptcy in April, has become the latest target of meme traders.
In June, the New York Stock Exchange notified Tupperware of its noncompliance with the exchange’s rules due to its low market capitalization and average closing price. However, in July, BlackRock stepped in as an investment partner, possibly to help manage Tupperware’s debt load. Despite this, no significant announcements or changes have been made since then.
The surge in Tupperware’s stock price has been accompanied by a threefold increase in trading volume compared to the prior 30-day average, according to FactSet. Posts on Reddit suggest that retail investors are betting on a short squeeze, similar to what happened with GameStop and AMC. Like these other meme stocks, Tupperware shares have been heavily shorted, indicating that many traders are betting on further declines.
However, investors should be cautious. Meme stocks are known for their volatility, with dramatic highs and lows. Libra Investment Services warned on Friday that investors in Tupperware face a high risk of loss. Despite the recent surge, Tupperware shares are still down nearly 30% year to date.
This sudden rise in Tupperware’s stock price highlights the influence of retail investors and the power of social media platforms like Reddit. It also raises questions about the sustainability of such increases and the potential risks for investors caught up in the meme stock frenzy.