Exela Technologies (NASDAQ:XELA) Stock Attempts to Recover: How Far Can it Go?
5:12 pm Friday, September 03rd, 2021
Nowadays people are often prone to take those stocks seriously which might be on the radars of investors who are active on Reddit and one stock that those investors seem to be taking an interest in at this point is Exela Technologies (NASDAQ:XELA) stock.
The company is involved in providing a whole gamut of information technology-related services starting from workflow automation to payment processing and from digital mailrooms to print communications. While the interest from Reddit traders is something to be considered it is also necessary to keep in mind that there are other fundamental reasons why the stock could be tracked. First and foremost, the short-interest ratio in the stock is currently quite high and that makes it ideal for a potential short squeeze.
For instance, towards the end of July, as many as 8.7 million Exela shares out of the total outstanding of 57 million shares were actually held short. Eventually, the stock did go through a short squeeze phase when it rallied strongly but ultimately it corrected as the traders moved on to other stocks.
However, Exela has a viable business and at this point in time, it provides its services to as many as 4000 clients spread across 50 nations. In addition to that, it is light on assets and that makes it a business that could do well in a growing market due to its higher flexibility. At this point, the total addressable market for Exela stands at $207 billion, and hence, it is a stock that investors could start tracking.
