After falling more than 12% on Thursday, Shake Shack shares are getting crushed again.
In early trade on Friday, shares of the burger chain were down more than 4% as the rough 24 hours for Shake Shack stock continues.
On Thursday, there was no obvious news moving the stock, but in an afternoon email after the market close, Dave Lutz at JonesTrading said traders were discussing the unwinding of a popular hedge fund trade as being a catalyst for the move.
Lutz said folks were talking about being short Yelp and long Shake Shack as popular positions, and with Yelp shares rising more than 20% on Thursday following reports that it could be looking to sell itself, some were forced to sell their Shake Shack positions to cover their Yelp shorts.
Or at least, that was word on the Street. And before Thursday’s big sell off, Shake Shack shares had been on a tear, rising more than 40% in a month following its earnings report.
The most recent hard news on Shake Shack was their first quarterly earnings report since going public, which had shares bouncing around in March.
Here’s the ugly chart of Shake Shack shares in the last few days.