Enovix Corporation (ENVX) stock plummeted 16.99% on Wednesday, January 8th, 2025, during the intraday trading session, as heavily-shorted and speculative stocks faced a severe selloff driven by retail traders.
The selloff was fueled by retail traders facing margin calls and unwinding leveraged positions, particularly in risky and profitless stocks. Rising Treasury yields also contributed to a shift in market sentiment, tempering speculation and raising concerns about valuations.
Enovix, a company focused on battery technology, was caught up in the broad rout of speculative names popular among retail traders, including quantum computing, nuclear power, cryptocurrency, and cannabis stocks. The selloff exacerbated losses as traders rushed to exit these positions, leading to a "day of reckoning" for the retail crowd.
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