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Rise of the Phoenix Stocks: Tupperware and Yellow Corporation Rocket 800% Amid Meme-Stock Revival

The meme-stock phenomenon is back in action as two almost-forgotten names, Tupperware and Yellow Corporation, have witnessed an astronomical surge in their share prices, reminding us of the unpredictable rollercoaster ride that is the stock market.

Teetering on the brink of bankruptcy, Tupperware had been flashing red lights to investors. Yellow Corporation had already taken a step further, filing for bankruptcy protection and bringing operations to a halt. Both had been marred by declining financial performance and meager profits in recent times. Yet, the looming risk of their stock being worth zilch didn’t deter traders from fueling an 800% rally for both stocks in the last couple of weeks.

Yellow’s shares catapulted an impressive 1,062% from their low on July 27, while Tupperware witnessed an 869% jump from its low on July 19. These surprising ascents weren’t triggered by substantial company news or impressive quarterly reports but rather seemed to be the product of a short-squeeze – a trading phenomenon where short-sellers scramble to buy back the stock, pushing the price higher.

Over the course of the year, Yellow saw its short interest swell from 8% to over 12% by mid-July, and Tupperware’s short interest more than doubled from 9% to about 22% in the same period. These statistics might be making other short-sellers sweat and reconsider their positions to sidestep a similar short-squeeze debacle. Case in point, Rite-Aid, another heavily shorted stock, saw its share price skyrocket by 68% on a quiet Wednesday with no significant news to justify the surge.

This renewed wave of irrational exuberance towards meme stocks is suggestive of investors’ willingness to embrace riskier plays, particularly as broader markets such as the S&P 500 and Nasdaq 100 boast robust year-to-date gains of 17% and 40% respectively.

But even as Tupperware and Yellow bask in the spotlight, they still have a mountain to climb. Despite the latest meme-stock mania, Tupperware shares remain 73% below their 52-week high, while Yellow still lags 54% behind its one-year peak. As the meme-stock saga continues, it serves as a constant reminder to investors that while the market may be unpredictable, it never ceases to entertain.