Why did Getty Images (NYSE: GETY) go berserk on Friday?

Shares of media company Getty Images surged on Friday. In premarket trading, traders pushed the stock up to $33. GETY reached an intraday high of $29.53. Talk about a gap up from Thursday's close of $10.50 - elevator up!


So what's the reason behind the massive 149% gain on the day? Getty Images was just recently taken public (again) to the New York Stock Exchange via a business combination with special purpose acquisition company CC Neuberger Principal Holdings II. On July 28, an 8-K form was filed was the SEC which announced that over 82 million shares were redeemed as part of the reverse merger process. This left only about 500k shares left in the "public float" - the shares available for investors to freely trade. Shares of Getty Images held by company insiders are prevented from being traded at this point.


So, with only ~500k available for trade, the daily volume of 12.93M was more than enough to send the stock soaring. Simply, high demand and low supply sent the stock on a whopping daily surge - driving the price up in most dramatic fashion.

What's next for Getty Images? The company is set to report earnings August 10th after the market close. It's tough to predict future price movement but there will surely be much volatility, both up & down, after a trading day like Friday for a stock with such a small public float.

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