Canada-based software company Sphere 3D (ANY) is a tech company with intriguing upside.
This virtualization, containerization, and data management company has benefited from impressive growth catalysts, as interest among cloud-related plays surges.
Sphere 3D has become a popular stock among retail investors for a couple of reasons. Obvious upside related to Sphere 3D's core business has enticed investors in its own right. However, a merger with crypto mining company Gryphon Digital has turned ANY stock into a crypto play.
Investors have also begun to look at ANY stock as a potential short-squeeze candidate in recent weeks, following a series of events we'll get into shortly.
This has resulted in some rather impressive volatility in ANY stock. (See ANY stock charts on TipRanks)
Can ANY stock squeeze again? Right now, I remain neutral on this stock as we ponder this question. However, let's dive into what investors may want to know about ANY stock right now.
A Closer Look into Sphere 3D
The company's core business of software-oriented solutions utilizing public, private, and hybrid cloud strategies is one that growth investors have been enticed by in its own right. The company's portfolio of brands, including Unified ConneXions, SnapServer, and HVE ConneXions, allows customers to fulfill their IT goals.
However, given how red-hot the crypto space has been of late, it's no surprise to see ANY stock continue to fluctuate with incredible volatility.
This growth potential has garnered the attention of retail traders and speculators. Given ANY stock's rather high short interest levels and borrow fee rates, this is a stock that has also been targeted as a potential short-squeeze play.
Of note, earlier this month, famed investor Will Meade commented on the potential of ANY stock in a series of Twitter (NYSE:TWTR) posts. These posts led to a spike in interest in ANY stock, a spike which has since dissipated somewhat.
That said, Sphere 3D is still a company that's heavily targeted by short sellers right now. If we do indeed see another meme stock rally, anything's possible with regards to the upside potential of these small cap stocks.
As retail investors shift their focus from a handful of popular plays to more obscure high-risk, high-reward options, ANY stock could benefit from this sentiment shift.
Vital Catalysts Steering ANY Stock Higher
Sphere 3D's high short interest and borrow fee rates are certainly two catalysts investors and traders are laser-focused on right now. Any sort of short-term spike in this company's stock price could send shares spiraling higher. At least, that's the hope of many short-term investors right now.
Additionally, how strong crypto markets (and the market for crypto miners) remain from here is another catalyst investors will be watching closely. Sphere 3D's deal to swallow up Gryphon is still being digested by the market, and could be a potential catalyst to start such a squeeze.
Right now, these catalysts are both high-risk in nature. Investors looking at Sphere 3D from a fundamentals perspective may not see a lot they like.
Bottom Line
Sphere 3D is a compelling play for aggressive investors seeking to add risk in this market. While such an approach has worked wonderfully this year (all things considered), there's always the potential the market could turn around.
Accordingly, this stock is one best reserved for folks with high risk tolerance thresholds, and the ability to withstand volatility in the near term.
Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article
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